Trade-Ideas LLC identified

Universal Electronics

(

UEIC

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

  • UEIC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.3 million.
  • UEIC has traded 46.5671999999999997044142219237983226776123046875 options contracts today.
  • UEIC is making at least a new 3-day high.
  • UEIC has a PE ratio of 43.
  • UEIC is mentioned 0.97 times per day on StockTwits.
  • UEIC has not yet been mentioned on StockTwits today.
  • UEIC is currently in the upper 20% of its 1-year range.
  • UEIC is in the upper 35% of its 20-day range.
  • UEIC is in the upper 45% of its 5-day range.
  • UEIC 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 UEIC:

Universal Electronics Inc. develops and manufactures pre-programmed and universal wireless remote control products, audio-video accessories, and software home entertainment systems. UEIC has a PE ratio of 43. Currently there are 3 analysts that rate Universal Electronics a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Universal Electronics has been 124,200 shares per day over the past 30 days. Universal has a market cap of $1.1 billion and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 1.65 and a short float of 6.8% with 5.75 days to cover. Shares are up 46.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Universal Electronics as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations 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:

  • The revenue growth came in higher than the industry average of 2.9%. Since the same quarter one year prior, revenues rose by 13.5%. 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 significantly increased by 155.60% to $3.14 million when compared to the same quarter last year. In addition, UNIVERSAL ELECTRONICS INC has also modestly surpassed the industry average cash flow growth rate of 152.48%.
  • Compared to its closing price of one year ago, UEIC's share price has jumped by 43.44%, 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.
  • UNIVERSAL ELECTRONICS INC's earnings per share declined by 40.6% 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, UNIVERSAL ELECTRONICS INC reported lower earnings of $1.89 versus $2.02 in the prior year. This year, the market expects an improvement in earnings ($3.38 versus $1.89).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Household Durables industry. The net income has significantly decreased by 47.6% when compared to the same quarter one year ago, falling from $5.19 million to $2.72 million.

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