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 $7.9 million.
- SATS is making at least a new 3-day high.
- SATS has a PE ratio of 30.5.
- SATS is mentioned 1.00 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 30.5. 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 147,500 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 0.6% with 1.36 days to cover. Shares are up 4.2% year-to-date as of the close of trading on Monday.
rates EchoStar as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- SATS's revenue growth has slightly outpaced the industry average of 0.5%. Since the same quarter one year prior, revenues slightly increased by 4.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- ECHOSTAR CORP 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 year. We feel that this trend should continue. During the past fiscal year, ECHOSTAR CORP increased its bottom line by earning $1.78 versus $0.03 in the prior year. This year, the market expects an improvement in earnings ($1.89 versus $1.78).
- 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 1006.2% when compared to the same quarter one year prior, rising from $4.51 million to $49.85 million.
- Net operating cash flow has significantly increased by 200.35% to $177.70 million when compared to the same quarter last year. In addition, ECHOSTAR CORP has also vastly surpassed the industry average cash flow growth rate of -19.30%.
- 40.39% 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 5.90% significantly trails the industry average.
- You can view the full EchoStar Ratings Report.