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 EchoStar as such a stock due to the following factors:
- SATS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.3 million.
- SATS is making at least a new 3-day high.
- SATS has a PE ratio of 43.3.
- SATS is mentioned 0.26 times per day on StockTwits.
- SATS has not yet been mentioned on StockTwits today.
- SATS is currently in the upper 20% of its 1-year range.
- SATS is in the upper 35% of its 20-day range.
- SATS is in the upper 45% of its 5-day range.
- SATS 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 SATS:
EchoStar Corporation provides satellite operations, video delivery solutions, and broadband satellite technologies and services for home and office worldwide. The company operates in three segments: EchoStar Technologies, Hughes, and EchoStar Satellite Services. SATS has a PE ratio of 43.3. Currently there are 3 analysts that rate EchoStar a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for EchoStar has been 154,500 shares per day over the past 30 days. EchoStar has a market cap of $2.4 billion and is part of the technology sector and telecommunications industry. The stock has a beta of 0.79 and a short float of 0.7% with 2.17 days to cover. Shares are up 2.4% year-to-date as of the close of trading on Wednesday.
rates EchoStar as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 5.2%. Since the same quarter one year prior, revenues slightly increased by 5.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Communications Equipment industry. The net income increased by 1292.8% when compared to the same quarter one year prior, rising from $4.32 million to $60.17 million.
- Net operating cash flow has increased to $290.46 million or 46.64% when compared to the same quarter last year. In addition, ECHOSTAR CORP has also vastly surpassed the industry average cash flow growth rate of -23.83%.
- 38.33% is the gross profit margin for ECHOSTAR CORP which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, SATS's net profit margin of 6.71% significantly trails the industry average.
- SATS's debt-to-equity ratio of 0.68 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. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 3.68 is very high and demonstrates very strong liquidity.
- You can view the full EchoStar Ratings Report.