Trade-Ideas LLC identified

InterXion

(

INXN

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

  • INXN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.4 million.
  • INXN has traded 279.0149999999999863575794734060764312744140625 options contracts today.
  • INXN is making at least a new 3-day high.
  • INXN has a PE ratio of 221.
  • INXN is mentioned 1.13 times per day on StockTwits.
  • INXN has not yet been mentioned on StockTwits today.
  • INXN is currently in the upper 20% of its 1-year range.
  • INXN is in the upper 35% of its 20-day range.
  • INXN is in the upper 45% of its 5-day range.
  • INXN 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 INXN:

InterXion Holding N.V. provides carrier and cloud neutral colocation data center services in Europe. The company enables its customers to connect to a range of telecommunications carriers, Internet service providers, and other customers. INXN has a PE ratio of 221. Currently there are 7 analysts that rate InterXion a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for InterXion has been 687,300 shares per day over the past 30 days. InterXion has a market cap of $2.2 billion and is part of the technology sector and internet industry. The stock has a beta of 0.57 and a short float of 1.6% with 1.78 days to cover. Shares are up 5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates InterXion as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, expanding profit margins, impressive record of earnings per share growth and largely solid financial position with reasonable debt levels by most measures. 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 18.3%. Since the same quarter one year prior, revenues slightly increased by 5.3%. 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 significantly exceeded that of the S&P 500 and the IT Services industry. The net income increased by 61.5% when compared to the same quarter one year prior, rising from $7.48 million to $12.08 million.
  • The gross profit margin for INTERXION HOLDING NV is rather high; currently it is at 61.08%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 12.00% trails the industry average.
  • INTERXION HOLDING NV 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, INTERXION HOLDING NV increased its bottom line by earning $0.75 versus $0.60 in the prior year. For the next year, the market is expecting a contraction of 11.3% in earnings ($0.67 versus $0.75).
  • Even though the current debt-to-equity ratio is 1.10, it is still below the industry average, suggesting that this level of debt is acceptable within the IT Services industry.

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