Trade-Ideas LLC identified

Itron

(

ITRI

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

  • ITRI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.1 million.
  • ITRI has traded 17.62689999999999912461134954355657100677490234375 options contracts today.
  • ITRI is making at least a new 3-day high.
  • ITRI has a PE ratio of 63.
  • ITRI is mentioned 1.13 times per day on StockTwits.
  • ITRI has not yet been mentioned on StockTwits today.
  • ITRI is currently in the upper 20% of its 1-year range.
  • ITRI is in the upper 35% of its 20-day range.
  • ITRI is in the upper 45% of its 5-day range.
  • ITRI 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 ITRI:

Itron, Inc. provides metering solutions to electricity, gas, and water utility markets worldwide. The company operates through three segments: Electricity, Gas, and Water. ITRI has a PE ratio of 63. Currently there are 2 analysts that rate Itron a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Itron has been 295,000 shares per day over the past 30 days. Itron has a market cap of $1.5 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.14 and a short float of 8.2% with 5.51 days to cover. Shares are up 10.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Itron as a

hold

. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. 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:

  • ITRON 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, ITRON INC turned its bottom line around by earning $0.65 versus -$0.58 in the prior year. This year, the market expects an improvement in earnings ($2.10 versus $0.65).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 143.4% when compared to the same quarter one year prior, rising from -$49.23 million to $21.36 million.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, ITRON INC's return on equity is below that of both the industry average and the S&P 500.
  • The gross profit margin for ITRON INC is currently lower than what is desirable, coming in at 33.82%. Regardless of ITRI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 4.35% trails the industry average.

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