Trade-Ideas LLC identified

TAL Education Group

(

XRS

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

  • XRS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $23.6 million.
  • XRS has traded 75.82089999999999463398125953972339630126953125 options contracts today.
  • XRS is making at least a new 3-day high.
  • XRS has a PE ratio of 47.
  • XRS is mentioned 1.23 times per day on StockTwits.
  • XRS has not yet been mentioned on StockTwits today.
  • XRS is currently in the upper 20% of its 1-year range.
  • XRS is in the upper 35% of its 20-day range.
  • XRS is in the upper 45% of its 5-day range.
  • XRS is currently trading above yesterday's high.

TheStreet Recommends

'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 XRS:

TAL Education Group, through its subsidiaries, provides K-12 after-school tutoring services in the People's Republic of China. XRS has a PE ratio of 47. Currently there are 2 analysts that rate TAL Education Group a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for TAL Education Group has been 578,100 shares per day over the past 30 days. TAL Education Group has a market cap of $4.6 billion and is part of the services sector and diversified services industry. Shares are up 22.7% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates TAL Education Group as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, solid stock price performance and expanding profit margins. 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 greatly exceeded the industry average of 7.7%. Since the same quarter one year prior, revenues rose by 42.1%. 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.
  • The current debt-to-equity ratio, 0.52, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.27, which illustrates the ability to avoid short-term cash problems.
  • 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. In comparison to other companies in the Diversified Consumer Services industry and the overall market on the basis of return on equity, TAL EDUCATION GROUP has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
  • Compared to its closing price of one year ago, XRS's share price has jumped by 40.84%, 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.
  • TAL EDUCATION GROUP's earnings per share declined by 23.5% 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, TAL EDUCATION GROUP increased its bottom line by earning $1.20 versus $0.81 in the prior year. This year, the market expects an improvement in earnings ($1.54 versus $1.20).

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