Trade-Ideas LLC identified

ServiceMaster Global Holdings

(

SERV

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

  • SERV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $56.8 million.
  • SERV has traded 114.5220000000000055706550483591854572296142578125 options contracts today.
  • SERV is making at least a new 3-day high.
  • SERV has a PE ratio of 32.
  • SERV is mentioned 1.58 times per day on StockTwits.
  • SERV has not yet been mentioned on StockTwits today.
  • SERV is currently in the upper 20% of its 1-year range.
  • SERV is in the upper 35% of its 20-day range.
  • SERV is in the upper 45% of its 5-day range.
  • SERV 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 SERV:

ServiceMaster Global Holdings, Inc. provides residential and commercial services in the United States. It operates in three segments: Terminix, American Home Shield, and the Franchise Services Group. SERV has a PE ratio of 32. Currently there are 6 analysts that rate ServiceMaster Global Holdings a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for ServiceMaster Global Holdings has been 1.6 million shares per day over the past 30 days. ServiceMaster Global has a market cap of $5.4 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.58 and a short float of 1.7% with 1.43 days to cover. Shares are up 3.4% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates ServiceMaster Global Holdings as a

hold

. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

Highlights from the ratings report include:

  • Compared to other companies in the Diversified Consumer Services industry and the overall market, SERVICEMASTER GLOBAL HLDGS's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly increased by 188.88% to $16.00 million when compared to the same quarter last year. In addition, SERVICEMASTER GLOBAL HLDGS has also vastly surpassed the industry average cash flow growth rate of -55.51%.
  • 49.50% is the gross profit margin for SERVICEMASTER GLOBAL HLDGS which we consider to be strong. Regardless of SERV's high profit margin, it has managed to decrease from the same period last year.
  • The debt-to-equity ratio is very high at 5.27 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, SERV maintains a poor quick ratio of 0.86, which illustrates the inability to avoid short-term cash problems.

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