Trade-Ideas LLC identified

Isle of Capri Casinos

(

ISLE

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

  • ISLE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.1 million.
  • ISLE has traded 88.4030000000000057980287238024175167083740234375 options contracts today.
  • ISLE is making at least a new 3-day high.
  • ISLE has a PE ratio of 52.
  • ISLE is mentioned 1.00 times per day on StockTwits.
  • ISLE has not yet been mentioned on StockTwits today.
  • ISLE is currently in the upper 20% of its 1-year range.
  • ISLE is in the upper 35% of its 20-day range.
  • ISLE is in the upper 45% of its 5-day range.
  • ISLE is currently trading above yesterday's high.

TST Recommends

'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 ISLE:

Isle of Capri Casinos, Inc., together with its subsidiaries, develops, owns, and operates branded gaming facilities and related dining, lodging, and entertainment facilities in the United States. ISLE has a PE ratio of 52. Currently there are 2 analysts that rate Isle of Capri Casinos a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Isle of Capri Casinos has been 407,700 shares per day over the past 30 days. Isle of Capri Casinos has a market cap of $800.4 million and is part of the services sector and leisure industry. The stock has a beta of 0.66 and a short float of 4.2% with 3.40 days to cover. Shares are up 133.7% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Isle of Capri Casinos as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

Highlights from the ratings report include:

  • ISLE's revenue growth has slightly outpaced the industry average of 0.5%. Since the same quarter one year prior, revenues slightly increased by 4.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • ISLE OF CAPRI CASINOS INC 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 two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, ISLE OF CAPRI CASINOS INC turned its bottom line around by earning $0.14 versus -$3.25 in the prior year. This year, the market expects an improvement in earnings ($1.23 versus $0.14).
  • 46.06% is the gross profit margin for ISLE OF CAPRI CASINOS INC 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, ISLE's net profit margin of 1.27% significantly trails the industry average.
  • Powered by its strong earnings growth of 625.00% and other important driving factors, this stock has surged by 185.09% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
  • The debt-to-equity ratio is very high at 34.54 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, ISLE has a quick ratio of 0.69, this demonstrates the lack of ability of the company to cover short-term liquidity needs.

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