Today's Strong And Under The Radar Stock Is Blue Nile (NILE)
Trade-Ideas LLC identified
(
) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Blue Nile as such a stock due to the following factors:
- NILE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.1 million.
- NILE has traded 115.118999999999999772626324556767940521240234375 options contracts today.
- NILE is making at least a new 3-day high.
- NILE has a PE ratio of 4.
- NILE is mentioned 0.58 times per day on StockTwits.
- NILE has not yet been mentioned on StockTwits today.
- NILE is currently in the upper 20% of its 1-year range.
- NILE is in the upper 35% of its 20-day range.
- NILE is in the upper 45% of its 5-day range.
- NILE 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 NILE:
Blue Nile, Inc. operates as an online retailer of diamonds and fine jewelry worldwide. NILE has a PE ratio of 4. Currently there is 1 analyst that rates Blue Nile a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Blue Nile has been 120,000 shares per day over the past 30 days. Blue Nile has a market cap of $400.2 million and is part of the services sector and specialty retail industry. The stock has a beta of 0.07 and a short float of 17.8% with 9.16 days to cover. Shares are up 0.1% year-to-date as of the close of trading on Monday.
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Analysis:
rates Blue Nile 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, growth in earnings per share, increase in net income and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- The revenue growth significantly trails the industry average of 38.2%. Since the same quarter one year prior, revenues slightly increased by 4.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- NILE's debt-to-equity ratio is very low at 0.04 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.46 is very weak and demonstrates a lack of ability to pay short-term obligations.
- BLUE NILE INC has improved earnings per share by 21.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BLUE NILE INC reported lower earnings of $0.81 versus $0.85 in the prior year. This year, the market expects an improvement in earnings ($0.90 versus $0.81).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Internet & Catalog Retail industry average, but is greater than that of the S&P 500. The net income increased by 19.8% when compared to the same quarter one year prior, going from $1.65 million to $1.98 million.
- After a year of stock price fluctuations, the net result is that NILE's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it is one of the factors that makes this stock an attractive investment.
- You can view the full Blue Nile Ratings Report.
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