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 General Communication as such a stock due to the following factors:
- GNCMA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.7 million.
- GNCMA is making at least a new 3-day high.
- GNCMA has a PE ratio of 37.0.
- GNCMA is mentioned 1.00 times per day on StockTwits.
- GNCMA has not yet been mentioned on StockTwits today.
- GNCMA is currently in the upper 20% of its 1-year range.
- GNCMA is in the upper 35% of its 20-day range.
- GNCMA is in the upper 45% of its 5-day range.
- GNCMA 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 GNCMA:
General Communication, Inc. provides communication services under the GCI brand in Alaska. It operates through two segments, Wireless and Wireline. GNCMA has a PE ratio of 37.0. Currently there are no analysts that rate General Communication a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for General Communication has been 168,800 shares per day over the past 30 days. General Communication has a market cap of $549.5 million and is part of the technology sector and telecommunications industry. The stock has a beta of 1.88 and a short float of 3% with 4.52 days to cover. Shares are up 7.7% year-to-date as of the close of trading on Tuesday.
rates General Communication as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and generally higher debt management risk.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 0.8%. Since the same quarter one year prior, revenues rose by 10.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Diversified Telecommunication Services industry. The net income increased by 40.5% when compared to the same quarter one year prior, rising from $8.91 million to $12.51 million.
- 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. Although other factors naturally played a role, the company's strong earnings growth was key. 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.
- The debt-to-equity ratio is very high at 5.94 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, GNCMA's quick ratio is somewhat strong at 1.39, demonstrating the ability to handle short-term liquidity needs.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Diversified Telecommunication Services industry and the overall market, GENERAL COMMUNICATION's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- You can view the full General Communication Ratings Report.