Trade-Ideas LLC identified

Fox Factory

(

FOXF

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

  • FOXF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.9 million.
  • FOXF has traded 11.582100000000000505906427861191332340240478515625 options contracts today.
  • FOXF is making at least a new 3-day high.
  • FOXF has a PE ratio of 33.
  • FOXF is mentioned 0.29 times per day on StockTwits.
  • FOXF has not yet been mentioned on StockTwits today.
  • FOXF is currently in the upper 20% of its 1-year range.
  • FOXF is in the upper 35% of its 20-day range.
  • FOXF is in the upper 45% of its 5-day range.
  • FOXF 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 FOXF:

Fox Factory Holding Corp. designs, engineers, manufactures, and markets ride dynamics products worldwide. FOXF has a PE ratio of 33. Currently there are 5 analysts that rate Fox Factory a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Fox Factory has been 107,700 shares per day over the past 30 days. Fox Factory has a market cap of $666.7 million and is part of the consumer goods sector and automotive industry. Shares are up 12.1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Fox Factory as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, growth in earnings per share, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 9.4%. Since the same quarter one year prior, revenues rose by 17.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Auto Components industry average. The net income increased by 2.9% when compared to the same quarter one year prior, going from $10.29 million to $10.59 million.
  • FOX FACTORY HOLDING CP's earnings per share improvement from the most recent quarter was slightly positive. 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, FOX FACTORY HOLDING CP increased its bottom line by earning $0.73 versus $0.56 in the prior year. This year, the market expects an improvement in earnings ($0.98 versus $0.73).
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 25.03% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • The current debt-to-equity ratio, 0.41, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that FOXF's debt-to-equity ratio is low, the quick ratio, which is currently 0.69, displays a potential problem in covering short-term cash needs.

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