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 or Stephanie Link.
Trade-Ideas LLC identified
) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified BGC Partners as such a stock due to the following factors:
- BGCP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.4 million.
- BGCP is making at least a new 3-day high.
- BGCP has a PE ratio of 41.2.
- BGCP is mentioned 0.77 times per day on StockTwits.
- BGCP has not yet been mentioned on StockTwits today.
- BGCP is currently in the upper 20% of its 1-year range.
- BGCP is in the upper 35% of its 20-day range.
- BGCP is in the upper 45% of its 5-day range.
- BGCP 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 BGCP:
BGC Partners, Inc. operates as a brokerage company, primarily servicing the wholesale financial and commercial real estate markets. It operates through two segments, Financial Services and Real Estate Services. The stock currently has a dividend yield of 6.1%. BGCP has a PE ratio of 41.2. Currently there is 1 analyst that rates BGC Partners a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for BGC Partners has been 971,600 shares per day over the past 30 days. BGC has a market cap of $1.4 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.30 and a short float of 2.6% with 4.94 days to cover. Shares are up 29.4% year-to-date as of the close of trading on Monday.
rates BGC Partners as a
. Among the primary strengths of the company is its solid stock price performance. At the same time, however, we also find weaknesses including deteriorating net income, poor profit margins and weak operating cash flow.
Highlights from the ratings report include:
- BGC PARTNERS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, BGC PARTNERS INC increased its bottom line by earning $0.35 versus $0.16 in the prior year. This year, the market expects an improvement in earnings ($0.58 versus $0.35).
- BGCP, with its decline in revenue, underperformed when compared the industry average of 6.9%. Since the same quarter one year prior, revenues slightly dropped by 9.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Compared to its closing price of one year ago, BGCP's share price has jumped by 40.54%, exceeding the performance of the broader market during that same time frame. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
- The gross profit margin for BGC PARTNERS INC is currently extremely low, coming in at 10.38%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, BGCP's net profit margin of 1.78% is significantly lower than the industry average.
- 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 Capital Markets industry. The net income has significantly decreased by 77.9% when compared to the same quarter one year ago, falling from $34.47 million to $7.60 million.
- You can view the full BGC Partners Ratings Report.