Trade-Ideas LLC identified

Shutterfly

(

SFLY

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

  • SFLY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.8 million.
  • SFLY has traded 255.611999999999994770405464805662631988525390625 options contracts today.
  • SFLY is making at least a new 3-day high.
  • SFLY has a PE ratio of 151.
  • SFLY is mentioned 1.16 times per day on StockTwits.
  • SFLY has not yet been mentioned on StockTwits today.
  • SFLY is currently in the upper 20% of its 1-year range.
  • SFLY is in the upper 35% of its 20-day range.
  • SFLY is in the upper 45% of its 5-day range.
  • SFLY 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 SFLY:

Shutterfly, Inc. engages in manufacturing and retailing personalized products and services in the United States. The company operates through Consumer and Enterprise segments. SFLY has a PE ratio of 151. Currently there are 5 analysts that rate Shutterfly a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Shutterfly has been 245,400 shares per day over the past 30 days. Shutterfly has a market cap of $1.6 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.83 and a short float of 8% with 11.16 days to cover. Shares are up 6.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Shutterfly as a

hold

. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive.

Highlights from the ratings report include:

  • SHUTTERFLY INC has improved earnings per share by 28.6% 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 year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, SHUTTERFLY INC turned its bottom line around by earning $0.02 versus -$0.28 in the prior year. This year, the market expects an improvement in earnings ($0.50 versus $0.02).
  • SFLY's revenue growth trails the industry average of 42.9%. Since the same quarter one year prior, revenues rose by 13.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • After a year of stock price fluctuations, the net result is that SFLY's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to the other companies in the Internet & Catalog Retail industry and the overall market, SHUTTERFLY INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Internet & Catalog Retail industry average, but is greater than that of the S&P 500. The net income increased by 34.7% when compared to the same quarter one year prior, rising from -$45.10 million to -$29.44 million.

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