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Trade-Ideas LLC identified

Globant

(

GLOB

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

  • GLOB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.0 million.
  • GLOB has traded 34.761200000000002319211489520967006683349609375 options contracts today.
  • GLOB is making at least a new 3-day high.
  • GLOB has a PE ratio of 39.
  • GLOB is mentioned 1.32 times per day on StockTwits.
  • GLOB has not yet been mentioned on StockTwits today.
  • GLOB is currently in the upper 20% of its 1-year range.
  • GLOB is in the upper 35% of its 20-day range.
  • GLOB is in the upper 45% of its 5-day range.
  • GLOB is currently trading above yesterday's high.

TheStreet Recommends

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More details on GLOB:

Globant S.A. develops software solutions in the United States, Europe, and Latin America. GLOB has a PE ratio of 39. Currently there are 4 analysts that rate Globant a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Globant has been 229,200 shares per day over the past 30 days. Globant has a market cap of $1.2 billion and is part of the technology sector and computer software & services industry. Shares are down 5.8% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Globant as a

hold

. 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 and solid stock price performance. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 8.1%. Since the same quarter one year prior, revenues rose by 29.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • GLOB's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.72, which clearly demonstrates the ability to cover short-term cash needs.
  • GLOBANT SA reported flat earnings per share in the most recent quarter. 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, GLOBANT SA increased its bottom line by earning $0.91 versus $0.75 in the prior year. This year, the market expects an improvement in earnings ($1.15 versus $0.91).
  • The company's current return on equity has remained constant since the same quarter one year prior. Compared to other companies in the Software industry and the overall market, GLOBANT SA's return on equity exceeds that of both the industry average and the S&P 500.
  • 38.91% is the gross profit margin for GLOBANT SA which we consider to be strong. Regardless of GLOB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 11.66% trails the industry average.

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