Trade-Ideas LLC identified

Mercury Systems

(

MRCY

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

  • MRCY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.6 million.
  • MRCY has traded 12.34329999999999927240423858165740966796875 options contracts today.
  • MRCY is making at least a new 3-day high.
  • MRCY has a PE ratio of 34.
  • MRCY is mentioned 0.52 times per day on StockTwits.
  • MRCY has not yet been mentioned on StockTwits today.
  • MRCY is currently in the upper 20% of its 1-year range.
  • MRCY is in the upper 35% of its 20-day range.
  • MRCY is in the upper 45% of its 5-day range.
  • MRCY is currently trading above yesterday's high.

TST 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 MRCY:

Mercury Systems, Inc. provides secure and sensor processing subsystems in the United States, Europe, and the Asia Pacific. The company operates through two segments, Mercury Commercial Electronics (MCE) and Mercury Defense Systems (MDS). MRCY has a PE ratio of 34. Currently there are 4 analysts that rate Mercury Systems a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Mercury Systems has been 166,600 shares per day over the past 30 days. Mercury Systems has a market cap of $585.2 million and is part of the technology sector and computer hardware industry. The stock has a beta of -0.09 and a short float of 1.5% with 2.64 days to cover. Shares are down 4.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Mercury Systems as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. 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:

  • MRCY's revenue growth has slightly outpaced the industry average of 0.6%. Since the same quarter one year prior, revenues slightly increased by 8.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • MRCY 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 3.40, which clearly demonstrates the ability to cover short-term cash needs.
  • MERCURY SYSTEMS INC reported significant earnings per share improvement 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 two years. We feel that this trend should continue. During the past fiscal year, MERCURY SYSTEMS INC turned its bottom line around by earning $0.43 versus -$0.12 in the prior year. This year, the market expects an improvement in earnings ($0.50 versus $0.43).
  • 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 292.8% when compared to the same quarter one year prior, rising from $0.50 million to $1.96 million.
  • Net operating cash flow has significantly increased by 157.71% to $5.61 million when compared to the same quarter last year. In addition, MERCURY SYSTEMS INC has also vastly surpassed the industry average cash flow growth rate of 2.01%.

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