Trade-Ideas LLC identified

Heartland Payment Systems

(

HPY

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

  • HPY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.4 million.
  • HPY has traded 26.34329999999999927240423858165740966796875 options contracts today.
  • HPY is making at least a new 3-day high.
  • HPY has a PE ratio of 59.
  • HPY is mentioned 0.94 times per day on StockTwits.
  • HPY has not yet been mentioned on StockTwits today.
  • HPY is currently in the upper 20% of its 1-year range.
  • HPY is in the upper 35% of its 20-day range.
  • HPY is in the upper 45% of its 5-day range.
  • HPY 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 HPY:

Heartland Payment Systems, Inc. provides payment processing services in the United States. The stock currently has a dividend yield of 0.6%. HPY has a PE ratio of 59. Currently there are 7 analysts that rate Heartland Payment Systems a buy, no analysts rate it a sell, and 8 rate it a hold.

The average volume for Heartland Payment Systems has been 240,800 shares per day over the past 30 days. Heartland Payment Systems has a market cap of $2.3 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 7.2% with 9.14 days to cover. Shares are up 15.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Heartland Payment Systems as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, increase in net income, solid stock price performance and growth in earnings per share. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 21.6%. Since the same quarter one year prior, revenues rose by 15.9%. 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 IT Services industry. The net income increased by 19.8% when compared to the same quarter one year prior, going from $17.45 million to $20.91 million.
  • Net operating cash flow has significantly increased by 196.49% to $56.38 million when compared to the same quarter last year. In addition, HEARTLAND PAYMENT SYSTEMS has also vastly surpassed the industry average cash flow growth rate of -2.74%.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 29.24% over the past year, a rise that has exceeded that of the S&P 500 Index. 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.
  • HEARTLAND PAYMENT SYSTEMS has improved earnings per share by 16.7% 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, HEARTLAND PAYMENT SYSTEMS reported lower earnings of $0.91 versus $1.98 in the prior year. This year, the market expects an improvement in earnings ($2.85 versus $0.91).

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