Trade-Ideas LLC identified

Sirona Dental Systems

(

SIRO

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

  • SIRO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $28.6 million.
  • SIRO has traded 10.8955000000000001847411112976260483264923095703125 options contracts today.
  • SIRO is making at least a new 3-day high.
  • SIRO has a PE ratio of 33.
  • SIRO is mentioned 1.58 times per day on StockTwits.
  • SIRO has not yet been mentioned on StockTwits today.
  • SIRO is currently in the upper 20% of its 1-year range.
  • SIRO is in the upper 35% of its 20-day range.
  • SIRO is in the upper 45% of its 5-day range.
  • SIRO 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 SIRO:

Sirona Dental Systems, Inc., together with its subsidiaries, develops, manufactures, and markets dental equipment for dentists worldwide. It operates through four segments Dental CAD/CAM Systems, Imaging Systems, Treatment Centers, and Instruments. SIRO has a PE ratio of 33. Currently there are 4 analysts that rate Sirona Dental Systems a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Sirona Dental Systems has been 429,400 shares per day over the past 30 days. Sirona Dental Systems has a market cap of $6.1 billion and is part of the health care sector and health services industry. The stock has a beta of 1.04 and a short float of 3.4% with 7.19 days to cover. Shares are up 25.7% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Sirona Dental Systems as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue 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 stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • SIRONA DENTAL SYSTEMS INC has improved earnings per share by 5.3% 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. During the past fiscal year, SIRONA DENTAL SYSTEMS INC increased its bottom line by earning $3.30 versus $3.13 in the prior year. This year, the market expects an improvement in earnings ($4.35 versus $3.30).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income increased by 6.3% when compared to the same quarter one year prior, going from $42.70 million to $45.40 million.
  • SIRO's revenue growth trails the industry average of 30.2%. Since the same quarter one year prior, revenues slightly increased by 5.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • SIRO's debt-to-equity ratio is very low at 0.06 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, SIRO has a quick ratio of 2.33, which demonstrates the ability of the company to cover short-term liquidity needs.

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