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 or Stephanie Link.
Trade-Ideas LLC identified
) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Blackbaud as such a stock due to the following factors:
- BLKB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.9 million.
- BLKB is making at least a new 3-day high.
- BLKB has a PE ratio of 52.4.
- BLKB is mentioned 0.57 times per day on StockTwits.
- BLKB has not yet been mentioned on StockTwits today.
- BLKB is currently in the upper 20% of its 1-year range.
- BLKB is in the upper 35% of its 20-day range.
- BLKB is in the upper 45% of its 5-day range.
- BLKB 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 BLKB:
Blackbaud, Inc. provides cloud-based and on-premise software solutions, and related services for nonprofit organizations. It operates in four segments: Enterprise Customer Business Unit, General Markets Business Unit, International Business Unit, and Target Analytics. The stock currently has a dividend yield of 1.2%. BLKB has a PE ratio of 52.4. Currently there is 1 analyst that rates Blackbaud a buy, 1 analyst rates it a sell, and none rate it a hold.
The average volume for Blackbaud has been 165,300 shares per day over the past 30 days. Blackbaud has a market cap of $1.8 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.45 and a short float of 8.4% with 12.87 days to cover. Shares are up 4.4% year-to-date as of the close of trading on Wednesday.
rates Blackbaud as a
. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- BLACKBAUD INC has improved earnings per share by 33.3% 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 year. We feel that this trend should continue. During the past fiscal year, BLACKBAUD INC increased its bottom line by earning $0.68 versus $0.14 in the prior year. This year, the market expects an improvement in earnings ($1.22 versus $0.68).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 40.1% when compared to the same quarter one year prior, rising from $6.62 million to $9.28 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 11.5%. Since the same quarter one year prior, revenues rose by 10.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Software industry and the overall market, BLACKBAUD INC's return on equity exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has increased to $31.84 million or 29.78% when compared to the same quarter last year. Despite an increase in cash flow, BLACKBAUD INC's cash flow growth rate is still lower than the industry average growth rate of 42.78%.
- You can view the full Blackbaud Ratings Report.