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 Faro Technologies as such a stock due to the following factors:
- FARO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.0 million.
- FARO is making at least a new 3-day high.
- FARO has a PE ratio of 31.3.
- FARO is mentioned 1.06 times per day on StockTwits.
- FARO has not yet been mentioned on StockTwits today.
- FARO is currently in the upper 20% of its 1-year range.
- FARO is in the upper 35% of its 20-day range.
- FARO is in the upper 45% of its 5-day range.
- FARO 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 FARO:
FARO Technologies, Inc., together with its subsidiaries, designs, develops, manufactures, markets, and supports software-based three-dimensional measurement and imaging systems for manufacturing, industrial, building construction, and forensic applications. FARO has a PE ratio of 31.3. Currently there are 2 analysts that rate Faro Technologies a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Faro Technologies has been 123,500 shares per day over the past 30 days. Faro has a market cap of $956.7 million and is part of the technology sector and electronics industry. The stock has a beta of 2.03 and a short float of 3.4% with 4.78 days to cover. Shares are down 3.1% year-to-date as of the close of trading on Wednesday.
rates Faro Technologies as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, impressive record of earnings per share growth and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 3.7%. Since the same quarter one year prior, revenues rose by 20.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- FARO 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 4.37, which clearly demonstrates the ability to cover short-term cash needs.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 122.6% when compared to the same quarter one year prior, rising from $5.04 million to $11.22 million.
- FARO TECHNOLOGIES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. 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, FARO TECHNOLOGIES INC reported lower earnings of $1.25 versus $1.34 in the prior year. This year, the market expects an improvement in earnings ($1.66 versus $1.25).
- The gross profit margin for FARO TECHNOLOGIES INC is rather high; currently it is at 55.98%. Regardless of FARO's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, FARO's net profit margin of 13.64% compares favorably to the industry average.
- You can view the full Faro Technologies Ratings Report.