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.

Trade-Ideas LLC identified

US Physical Therapy

(

USPH

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

  • USPH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.3 million
  • USPH is making at least a new 3-day high
  • USPH has a PE ratio of 31
  • USPH is mentioned 0.52 times per day on StockTwits
  • USPH has not yet been mentioned on StockTwits today
  • USPH is currently in the upper 20% of its 1-year range
  • USPH is in the upper 35% of its 20-day range
  • USPH is in the upper 45% of its 5-day range
  • USPH 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 USPH:

U.S. Physical Therapy, Inc., through its subsidiaries, operates outpatient physical therapy clinics in the United States. The stock currently has a dividend yield of 1.1%. USPH has a PE ratio of 31. Currently there are three analysts that rate US Physical Therapy a buy, no analysts rate it a sell, and one rates it a hold.

The average volume for US Physical Therapy has been 55,500 shares per day over the past 30 days. US Physical Therapy has a market cap of $657.8 million and is part of the health care sector and health services industry. The stock has a beta of 0.99 and a short float of 2.4% with 4.66 days to cover. Shares are up 27.3% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates US Physical Therapy as a

buy

. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:

  • U S PHYSICAL THERAPY INC has improved earnings per share by 25.9% 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 two years. We feel that this trend should continue. During the past fiscal year, U S PHYSICAL THERAPY INC increased its bottom line by earning $1.71 versus $1.43 in the prior year. This year, the market expects an improvement in earnings ($1.85 versus $1.71).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Health Care Providers & Services industry average. The net income increased by 27.8% when compared to the same quarter one year prior, rising from $3.26 million to $4.17 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 13.0%. Since the same quarter one year prior, revenues rose by 10.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • USPH's debt-to-equity ratio is very low at 0.29 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, USPH has a quick ratio of 2.36, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Health Care Providers & Services industry and the overall market, U S PHYSICAL THERAPY INC's return on equity exceeds that of both the industry average and the S&P 500.

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