Trade-Ideas LLC identified

PPL

(

PPL

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

  • PPL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $145.2 million.
  • PPL has traded 1934.549999999999954525264911353588104248046875 options contracts today.
  • PPL is making at least a new 3-day high.
  • PPL has a PE ratio of 16.
  • PPL is mentioned 1.52 times per day on StockTwits.
  • PPL has not yet been mentioned on StockTwits today.
  • PPL is currently in the upper 20% of its 1-year range.
  • PPL is in the upper 35% of its 20-day range.
  • PPL is in the upper 45% of its 5-day range.
  • PPL 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 PPL:

PPL Corporation, a utility company, delivers electricity and natural gas in the United States and the United Kingdom. The stock currently has a dividend yield of 4%. PPL has a PE ratio of 16. Currently there are 6 analysts that rate PPL a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for PPL has been 5.2 million shares per day over the past 30 days. PPL has a market cap of $25.4 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.39 and a short float of 2.1% with 2.77 days to cover. Shares are up 10.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates PPL as a

buy

. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Electric Utilities industry and the overall market, PPL CORP's return on equity exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to $936.00 million or 20.77% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 1.56%.
  • 46.97% is the gross profit margin for PPL CORP which we consider to be strong. Regardless of PPL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PPL's net profit margin of 22.41% significantly outperformed against the industry.
  • 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, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • PPL CORP' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, PPL CORP increased its bottom line by earning $2.38 versus $2.18 in the prior year. For the next year, the market is expecting a contraction of 1.3% in earnings ($2.35 versus $2.38).

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