Strong And Under The Radar Today: Natus Medical (BABY)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Natus Medical as such a stock due to the following factors:
- BABY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.8 million.
- BABY is making at least a new 3-day high.
- BABY has a PE ratio of 37.1.
- BABY is mentioned 1.94 times per day on StockTwits.
- BABY has not yet been mentioned on StockTwits today.
- BABY is currently in the upper 20% of its 1-year range.
- BABY is in the upper 35% of its 20-day range.
- BABY is in the upper 45% of its 5-day range.
- BABY 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 BABY:
Natus Medical Incorporated provides newborn care and neurology healthcare products worldwide. BABY has a PE ratio of 37.1. Currently there are 3 analysts that rate Natus Medical a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Natus Medical has been 239,900 shares per day over the past 30 days. Natus Medical has a market cap of $1.2 billion and is part of the health care sector and health services industry. The stock has a beta of 0.66 and a short float of 4.6% with 6.91 days to cover. Shares are up 2.6% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Natus Medical as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, growth in earnings per share and solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the ratings report include:
- BABY's revenue growth has slightly outpaced the industry average of 1.1%. Since the same quarter one year prior, revenues slightly increased by 3.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- BABY has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, BABY has a quick ratio of 2.14, which demonstrates the ability of the company to cover short-term liquidity needs.
- NATUS MEDICAL INC's earnings per share improvement from the most recent quarter was slightly positive. 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, NATUS MEDICAL INC increased its bottom line by earning $0.97 versus $0.73 in the prior year. This year, the market expects an improvement in earnings ($1.45 versus $0.97).
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 36.91% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- You can view the full Natus Medical Ratings Report.
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