Today's Strong And Under The Radar Stock: Shenandoah Telecommunications (SHEN)

Trade-Ideas LLC identified Shenandoah Telecommunications (SHEN) as a strong and under the radar candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Shenandoah Telecommunications

(

SHEN

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Shenandoah Telecommunications as such a stock due to the following factors:

  • SHEN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.3 million.
  • SHEN has traded 12.8208999999999999630517777404747903347015380859375 options contracts today.
  • SHEN is making at least a new 3-day high.
  • SHEN has a PE ratio of 32.
  • SHEN is mentioned 0.97 times per day on StockTwits.
  • SHEN has not yet been mentioned on StockTwits today.
  • SHEN is currently in the upper 20% of its 1-year range.
  • SHEN is in the upper 35% of its 20-day range.
  • SHEN is in the upper 45% of its 5-day range.
  • SHEN 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 SHEN:

Shenandoah Telecommunications Company, through its subsidiaries, provides regulated and unregulated telecommunications services to end-user customers and other telecommunications providers in Virginia, West Virginia, central Pennsylvania, and western Maryland. The stock currently has a dividend yield of 1%. SHEN has a PE ratio of 32. Currently there are 2 analysts that rate Shenandoah Telecommunications a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Shenandoah Telecommunications has been 105,200 shares per day over the past 30 days. Shenandoah Telecommunications has a market cap of $1.2 billion and is part of the technology sector and telecommunications industry. The stock has a beta of 0.69 and a short float of 2.1% with 4.47 days to cover. Shares are up 51.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Shenandoah Telecommunications as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 13.0%. Since the same quarter one year prior, revenues slightly increased by 3.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Wireless Telecommunication Services industry and the overall market, SHENANDOAH TELECOMMUN CO's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • SHENANDOAH TELECOMMUN CO reported flat earnings per share in the most recent quarter. 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, SHENANDOAH TELECOMMUN CO increased its bottom line by earning $1.39 versus $1.23 in the prior year. This year, the market expects an improvement in earnings ($1.57 versus $1.39).
  • The gross profit margin for SHENANDOAH TELECOMMUN CO is rather high; currently it is at 64.12%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 9.38% trails the industry average.
  • SHEN's debt-to-equity ratio of 0.72 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that SHEN's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.10 is high and demonstrates strong liquidity.

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