Trade-Ideas LLC identified

Computer Programs and Systems

(

CPSI

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

  • CPSI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.1 million.
  • CPSI has traded 32.20900000000000318323145620524883270263671875 options contracts today.
  • CPSI is making at least a new 3-day high.
  • CPSI has a PE ratio of 34.
  • CPSI is mentioned 1.19 times per day on StockTwits.
  • CPSI has not yet been mentioned on StockTwits today.
  • CPSI is currently in the upper 20% of its 1-year range.
  • CPSI is in the upper 35% of its 20-day range.
  • CPSI is in the upper 45% of its 5-day range.
  • CPSI is currently trading above yesterday's high.

TheStreet Recommends

'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 CPSI:

Computer Programs and Systems, Inc. provides healthcare information technology solutions for rural and community hospitals in the United States. The company's integrated enterprise-wide system automates clinical and financial data management in the functional areas of a hospital. The stock currently has a dividend yield of 4.6%. CPSI has a PE ratio of 34. Currently there are 3 analysts that rate Computer Programs and Systems a buy, 1 analyst rates it a sell, and 10 rate it a hold.

The average volume for Computer Programs and Systems has been 175,400 shares per day over the past 30 days. Computer Programs and Systems has a market cap of $624.4 million and is part of the technology sector and computer software & services industry. The stock has a beta of 0.11 and a short float of 14.4% with 6.03 days to cover. Shares are up 10.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Computer Programs and Systems as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and feeble growth in the company's earnings per share.

Highlights from the ratings report include:

  • CPSI has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.96, which clearly demonstrates the ability to cover short-term cash needs.
  • Compared to where it was trading a year ago, CPSI's share price has not changed very much due to (a) the relatively weak year-over-year performance of the overall market, (b) the company's stagnant earnings, and (c) other mixed results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • 39.60% is the gross profit margin for COMPUTER PROGRAMS & SYSTEMS which we consider to be strong. Regardless of CPSI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 7.67% trails the industry average.
  • 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 Health Care Technology industry. The net income has significantly decreased by 49.7% when compared to the same quarter one year ago, falling from $6.74 million to $3.39 million.
  • Net operating cash flow has significantly decreased to $4.55 million or 64.66% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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