Trade-Ideas LLC identified

Gartner

(

IT

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

  • IT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $48.5 million.
  • IT has traded 32.3581999999999965211827657185494899749755859375 options contracts today.
  • IT is making at least a new 3-day high.
  • IT has a PE ratio of 47.
  • IT is mentioned 1.03 times per day on StockTwits.
  • IT has not yet been mentioned on StockTwits today.
  • IT is currently in the upper 20% of its 1-year range.
  • IT is in the upper 35% of its 20-day range.
  • IT is in the upper 45% of its 5-day range.
  • IT 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 IT:

Gartner, Inc. provides independent and objective research and analysis on the information technology (IT), computer hardware, software, communications, and related technology industries in the United States, Canada, Europe, the Middle East, Africa, and internationally. IT has a PE ratio of 47. Currently there are 3 analysts that rate Gartner a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Gartner has been 359,400 shares per day over the past 30 days. Gartner has a market cap of $7.6 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.89 and a short float of 2.2% with 3.10 days to cover. Shares are up 7.8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Gartner as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 27.0%. Since the same quarter one year prior, revenues slightly increased by 6.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The gross profit margin for GARTNER INC is rather high; currently it is at 61.29%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, IT's net profit margin of 6.07% significantly trails the industry average.
  • GARTNER INC's earnings per share declined by 5.3% in the most recent quarter compared to the same quarter a year ago. 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, GARTNER INC increased its bottom line by earning $2.02 versus $1.92 in the prior year. This year, the market expects an improvement in earnings ($2.34 versus $2.02).
  • 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, despite the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
  • Net operating cash flow has declined marginally to $116.90 million or 4.84% when compared to the same quarter last year. Despite a decrease in cash flow of 4.84%, GARTNER INC is in line with the industry average cash flow growth rate of -11.15%.

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