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.

Trade-Ideas LLC identified

Financial Engines

(

FNGN

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

  • FNGN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.3 million.
  • FNGN has traded 174.657000000000010686562745831906795501708984375 options contracts today.
  • FNGN is making at least a new 3-day high.
  • FNGN has a PE ratio of 63.
  • FNGN is mentioned 0.87 times per day on StockTwits.
  • FNGN has not yet been mentioned on StockTwits today.
  • FNGN is currently in the upper 20% of its 1-year range.
  • FNGN is in the upper 35% of its 20-day range.
  • FNGN is in the upper 45% of its 5-day range.
  • FNGN 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 FNGN:

Financial Engines, Inc. provides independent, technology-enabled personalized portfolio management services, investment advice, and retirement income services primarily to participants in employer-sponsored defined contribution plans in the United States. The stock currently has a dividend yield of 0.6%. FNGN has a PE ratio of 63. Currently there are 3 analysts that rate Financial Engines a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Financial Engines has been 306,600 shares per day over the past 30 days. Financial Engines has a market cap of $2.3 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.07 and a short float of 31.9% with 56.51 days to cover. Shares are up 21.2% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Financial Engines as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:

  • FNGN's revenue growth has slightly outpaced the industry average of 3.9%. Since the same quarter one year prior, revenues rose by 13.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Capital Markets industry average. The net income increased by 1.1% when compared to the same quarter one year prior, going from $7.82 million to $7.90 million.
  • Net operating cash flow has increased to $14.83 million or 44.55% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 1.80%.
  • FINANCIAL ENGINES INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, FINANCIAL ENGINES INC increased its bottom line by earning $0.70 versus $0.56 in the prior year. This year, the market expects an improvement in earnings ($0.96 versus $0.70).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Capital Markets industry and the overall market on the basis of return on equity, FINANCIAL ENGINES INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.

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