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 $7.0 million.
  • MRCY has traded 18.61189999999999855617716093547642230987548828125 options contracts today.
  • MRCY is making at least a new 3-day high.
  • MRCY has a PE ratio of 46.
  • MRCY is mentioned 1.42 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.

'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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in MRCY with the Ticky from Trade-Ideas. See the FREE profile for MRCY NOW at Trade-Ideas

More details on MRCY:

Mercury Systems, Inc. provides secure processing subsystems for various critical defense and intelligence programs in the United States. The company's products and solutions are deployed in approximately 300 programs with 25 defense prime contractors. MRCY has a PE ratio of 46. 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 338,400 shares per day over the past 30 days. Mercury Systems has a market cap of $967.1 million and is part of the technology sector and computer hardware industry. The stock has a beta of 0.47 and a short float of 2.4% with 2.43 days to cover. Shares are up 30.3% year-to-date as of the close of trading on Monday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

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, compelling growth in net income, solid stock price performance and expanding profit margins. We feel its 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 0.4%. Since the same quarter one year prior, revenues rose by 10.6%. 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.
  • 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 3.64, 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 Aerospace & Defense industry. The net income increased by 23.1% when compared to the same quarter one year prior, going from $3.68 million to $4.53 million.
  • Compared to its closing price of one year ago, MRCY's share price has jumped by 63.78%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • MERCURY SYSTEMS INC's earnings per share declined by 7.1% 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, 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 ($0.46 versus $0.43).

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.