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 Belden as such a stock due to the following factors:
- BDC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $25.3 million.
- BDC is making at least a new 3-day high.
- BDC has a PE ratio of 50.1.
- BDC is mentioned 1.32 times per day on StockTwits.
- BDC has not yet been mentioned on StockTwits today.
- BDC is currently in the upper 20% of its 1-year range.
- BDC is in the upper 35% of its 20-day range.
- BDC is in the upper 45% of its 5-day range.
- BDC 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 BDC:
Belden Inc. designs, manufactures, and markets signal transmission solutions used in broadcast, enterprise, and industrial applications. It operates in four segments: Broadcast Solutions, Enterprise Connectivity Solutions, Industrial Connectivity Solutions, and Industrial IT Solutions. The stock currently has a dividend yield of 0.2%. BDC has a PE ratio of 50.1. Currently there are 3 analysts that rate Belden a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Belden has been 360,500 shares per day over the past 30 days. Belden has a market cap of $3.6 billion and is part of the industrial goods sector and industrial industry. Shares are up 7.9% year-to-date as of the close of trading on Tuesday.
rates Belden as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 2.7%. Since the same quarter one year prior, revenues rose by 19.4%. 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.
- Net operating cash flow has increased to $129.26 million or 13.58% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -7.93%.
- 38.96% is the gross profit margin for BELDEN INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 2.62% trails the industry average.
- Compared to its closing price of one year ago, BDC's share price has jumped by 32.65%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- BELDEN INC's earnings per share declined by 35.2% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, BELDEN INC reported lower earnings of $1.69 versus $2.34 in the prior year. This year, the market expects an improvement in earnings ($5.52 versus $1.69).
- You can view the full Belden Ratings Report.