Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified KCG Holdings as such a stock due to the following factors:
- KCG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.3 million.
- KCG is making at least a new 3-day high.
- KCG is mentioned 0.19 times per day on StockTwits.
- KCG has not yet been mentioned on StockTwits today.
- KCG is currently in the upper 20% of its 1-year range.
- KCG is in the upper 35% of its 20-day range.
- KCG is in the upper 45% of its 5-day range.
- KCG 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 KCG:
KCG Holdings, Inc., an independent securities firm, provides a range of services designed to address trading needs across asset classes, product types, and time zones. The company operates through three segments: Market Making, Global Execution Services, and Corporate and Other. Currently there are 2 analysts that rate KCG Holdings a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for KCG Holdings has been 338,300 shares per day over the past 30 days. KCG has a market cap of $1.4 billion and is part of the financial sector and financial services industry. The stock has a beta of 0.45 and a short float of 6.6% with 9.90 days to cover. Shares are up 1.3% year-to-date as of the close of trading on Friday.
rates KCG Holdings as a
. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, poor profit margins and relatively poor performance when compared with the S&P 500 during the past year.
Highlights from the ratings report include:
- KCG HOLDINGS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. For the next year, the market is expecting a contraction of 35.9% in earnings ($0.50 versus $0.78).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Capital Markets industry. The net income has significantly decreased by 104.2% when compared to the same quarter one year ago, falling from $227.78 million to -$9.62 million.
- The gross profit margin for KCG HOLDINGS INC is currently extremely low, coming in at 3.38%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -3.68% is significantly below that of the industry average.
- In its most recent trading session, KCG has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. 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.
- KCG, with its decline in revenue, underperformed when compared the industry average of 1.6%. Since the same quarter one year prior, revenues fell by 24.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full KCG Holdings Ratings Report.