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 Balchem as such a stock due to the following factors:
- BCPC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.7 million.
- BCPC is making at least a new 3-day high.
- BCPC has a PE ratio of 48.2.
- BCPC is mentioned 0.32 times per day on StockTwits.
- BCPC has not yet been mentioned on StockTwits today.
- BCPC is currently in the upper 20% of its 1-year range.
- BCPC is in the upper 35% of its 20-day range.
- BCPC is in the upper 45% of its 5-day range.
- BCPC 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 BCPC:
Balchem Corporation develops, manufactures, and sells specialty performance ingredients and products for the food, nutritional, feed, pharmaceutical, and medical sterilization industries in the United States and internationally. The stock currently has a dividend yield of 0.4%. BCPC has a PE ratio of 48.2. Currently there is 1 analyst that rates Balchem a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Balchem has been 141,500 shares per day over the past 30 days. Balchem has a market cap of $1.9 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 0.49 and a short float of 5.2% with 11.93 days to cover. Shares are up 8.2% year-to-date as of the close of trading on Thursday.
rates Balchem as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- BCPC's very impressive revenue growth greatly exceeded the industry average of 9.9%. Since the same quarter one year prior, revenues leaped by 58.7%. 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.
- BALCHEM CORP's earnings per share declined by 18.4% 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, BALCHEM CORP increased its bottom line by earning $1.47 versus $1.33 in the prior year. This year, the market expects an improvement in earnings ($1.74 versus $1.47).
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- The gross profit margin for BALCHEM CORP is currently lower than what is desirable, coming in at 33.50%. Regardless of BCPC's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 7.35% trails the industry average.
- The debt-to-equity ratio of 1.12 is relatively high when compared with the industry average, suggesting a need for better debt level management. Regardless of the company's weak debt-to-equity ratio, BCPC has managed to keep a strong quick ratio of 1.63, which demonstrates the ability to cover short-term cash needs.
- You can view the full Balchem Ratings Report.