Trade-Ideas LLC identified

Shutterfly

(

SFLY

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

  • SFLY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.1 million.
  • SFLY has traded 155.969999999999998863131622783839702606201171875 options contracts today.
  • SFLY is making at least a new 3-day high.
  • SFLY has a PE ratio of 145.
  • SFLY is mentioned 1.23 times per day on StockTwits.
  • SFLY has not yet been mentioned on StockTwits today.
  • SFLY is currently in the upper 20% of its 1-year range.
  • SFLY is in the upper 35% of its 20-day range.
  • SFLY is in the upper 45% of its 5-day range.
  • SFLY 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 SFLY:

Shutterfly, Inc. engages in manufacturing and retailing personalized products and services in the United States. The company operates through Consumer and Enterprise segments. SFLY has a PE ratio of 145. Currently there are 5 analysts that rate Shutterfly a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Shutterfly has been 242,300 shares per day over the past 30 days. Shutterfly has a market cap of $1.6 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.93 and a short float of 7.3% with 8.49 days to cover. Shares are up 5.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Shutterfly as a

hold

. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:

  • SHUTTERFLY INC has improved earnings per share by 28.6% 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. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, SHUTTERFLY INC turned its bottom line around by earning $0.02 versus -$0.28 in the prior year. This year, the market expects an improvement in earnings ($0.50 versus $0.02).
  • SFLY's revenue growth trails the industry average of 42.6%. Since the same quarter one year prior, revenues rose by 13.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 47.62% is the gross profit margin for SHUTTERFLY INC which we consider to be strong. Regardless of SFLY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SFLY's net profit margin of -16.19% significantly underperformed when compared to the industry average.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to the other companies in the Internet & Catalog Retail industry and the overall market, SHUTTERFLY INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Internet & Catalog Retail industry average, but is greater than that of the S&P 500. The net income increased by 34.7% when compared to the same quarter one year prior, rising from -$45.10 million to -$29.44 million.

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