Trade-Ideas LLC identified

ExlService Holdings

(

EXLS

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

  • EXLS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.7 million.
  • EXLS has traded 12.6715999999999997527311279554851353168487548828125 options contracts today.
  • EXLS is making at least a new 3-day high.
  • EXLS has a PE ratio of 37.
  • EXLS is mentioned 0.32 times per day on StockTwits.
  • EXLS has not yet been mentioned on StockTwits today.
  • EXLS is currently in the upper 20% of its 1-year range.
  • EXLS is in the upper 35% of its 20-day range.
  • EXLS is in the upper 45% of its 5-day range.
  • EXLS 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in EXLS with the Ticky from Trade-Ideas. See the FREE profile for EXLS NOW at Trade-Ideas

More details on EXLS:

ExlService Holdings, Inc. provides business process solutions, utilizing operations management, analytics, and technology primarily in the United States and the United Kingdom. It operates in two segments, Operations Management, and Analytics and Business Transformation. EXLS has a PE ratio of 37. Currently there are 5 analysts that rate ExlService Holdings a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for ExlService Holdings has been 142,400 shares per day over the past 30 days. ExlService has a market cap of $1.3 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.29 and a short float of 2% with 4.94 days to cover. Shares are up 35.2% year-to-date as of the close of trading on Wednesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates ExlService Holdings 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, increase in net income, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 21.7%. Since the same quarter one year prior, revenues rose by 24.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • EXLS's debt-to-equity ratio is very low at 0.16 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.84, which clearly demonstrates the ability to cover short-term cash needs.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the IT Services industry. The net income increased by 55.5% when compared to the same quarter one year prior, rising from $7.76 million to $12.07 million.
  • Net operating cash flow has increased to $27.03 million or 18.61% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -2.03%.
  • 35.43% is the gross profit margin for EXLSERVICE HOLDINGS INC which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, EXLS's net profit margin of 7.75% significantly trails the industry average.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.