Strong And Under The Radar: RE/MAX Holdings (RMAX)
Trade-Ideas LLC identified
(
) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified RE/MAX Holdings as such a stock due to the following factors:
- RMAX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.7 million.
- RMAX has traded 10.298500000000000653699316899292171001434326171875 options contracts today.
- RMAX is making at least a new 3-day high.
- RMAX has a PE ratio of 3.
- RMAX is mentioned 0.71 times per day on StockTwits.
- RMAX has not yet been mentioned on StockTwits today.
- RMAX is currently in the upper 20% of its 1-year range.
- RMAX is in the upper 35% of its 20-day range.
- RMAX is in the upper 45% of its 5-day range.
- RMAX is currently trading above yesterday's high.
'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.
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More details on RMAX:
RE/MAX Holdings, Inc. operates as a franchisor of residential and commercial real estate brokerage services in the United States and internationally. The company offers its real estate franchise services under the RE/MAX brand name. The stock currently has a dividend yield of 1.5%. RMAX has a PE ratio of 3. Currently there is 1 analyst that rates RE/MAX Holdings a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for RE/MAX Holdings has been 112,600 shares per day over the past 30 days. RE/MAX has a market cap of $723.5 million and is part of the financial sector and real estate industry. Shares are up 12.2% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates RE/MAX Holdings as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and compelling growth in net income. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- RE/MAX HOLDINGS INC has improved earnings per share by 27.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, RE/MAX HOLDINGS INC increased its bottom line by earning $1.30 versus $1.10 in the prior year. This year, the market expects an improvement in earnings ($1.66 versus $1.30).
- The current debt-to-equity ratio, 0.41, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, RMAX has a quick ratio of 2.07, which demonstrates the ability of the company to cover short-term liquidity needs.
- 48.96% is the gross profit margin for RE/MAX HOLDINGS INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 11.51% is above that of the industry average.
- RMAX, with its decline in revenue, underperformed when compared the industry average of 16.9%. Since the same quarter one year prior, revenues slightly dropped by 2.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full RE/MAX Holdings Ratings Report.
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