Trade-Ideas LLC identified

Blackhawk Network Holdings

(

HAWK

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

  • HAWK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.4 million.
  • HAWK has traded 209.969999999999998863131622783839702606201171875 options contracts today.
  • HAWK is making at least a new 3-day high.
  • HAWK has a PE ratio of 55.
  • HAWK is mentioned 1.35 times per day on StockTwits.
  • HAWK has not yet been mentioned on StockTwits today.
  • HAWK is currently in the upper 20% of its 1-year range.
  • HAWK is in the upper 35% of its 20-day range.
  • HAWK is in the upper 45% of its 5-day range.
  • HAWK 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 HAWK:

Blackhawk Network Holdings, Inc. provides a range of prepaid gift, telecom, and debit cards; and related prepaid products and payment services. HAWK has a PE ratio of 55. Currently there are 7 analysts that rate Blackhawk Network Holdings a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Blackhawk Network Holdings has been 534,700 shares per day over the past 30 days. Blackhawk Network has a market cap of $2.6 billion and is part of the financial sector and financial services industry. The stock has a beta of 0.07 and a short float of 18.6% with 3.61 days to cover. Shares are up 20.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Blackhawk Network Holdings as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 27.1%. Since the same quarter one year prior, revenues rose by 31.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has increased to -$26.22 million or 49.60% when compared to the same quarter last year. In addition, BLACKHAWK NETWORK HLDGS INC has also vastly surpassed the industry average cash flow growth rate of -11.25%.
  • The debt-to-equity ratio is somewhat low, currently at 0.70, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.73 is somewhat weak and could be cause for future problems.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the IT Services industry. The net income has significantly decreased by 751.4% when compared to the same quarter one year ago, falling from $0.56 million to -$3.62 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. In comparison to the other companies in the IT Services industry and the overall market, BLACKHAWK NETWORK HLDGS INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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