Strong And Under The Radar Today: RE/MAX Holdings (RMAX)

Trade-Ideas LLC identified RE/MAX Holdings (RMAX) as a strong and under the radar candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

RE/MAX Holdings

(

RMAX

) 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 $2.6 million.
  • RMAX has traded 7.3133999999999996788346834364347159862518310546875 options contracts today.
  • RMAX is making at least a new 3-day high.
  • RMAX has a PE ratio of 33.
  • RMAX is mentioned 0.94 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. It operates in two segments, Real Estate Franchise Services and Brokerages. The stock currently has a dividend yield of 1.3%. RMAX has a PE ratio of 33. Currently there are 2 analysts that rate RE/MAX Holdings a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for RE/MAX Holdings has been 65,700 shares per day over the past 30 days. RE/MAX has a market cap of $473.4 million and is part of the financial sector and real estate industry. Shares are up 11.6% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates RE/MAX Holdings as a

buy

. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. 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:

  • RE/MAX HOLDINGS INC has improved earnings per share by 11.1% 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 year. We feel that this trend should continue. During the past fiscal year, RE/MAX HOLDINGS INC turned its bottom line around by earning $1.10 versus -$1.25 in the prior year. This year, the market expects an improvement in earnings ($1.57 versus $1.10).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Real Estate Management & Development industry average. The net income increased by 13.5% when compared to the same quarter one year prior, going from $4.38 million to $4.97 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 12.6%. Since the same quarter one year prior, revenues slightly increased by 4.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.83, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, RMAX has a quick ratio of 2.16, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has increased to $19.79 million or 16.75% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -27.93%.

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