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 $10.3 million.
  • EXLS has traded 20.671600000000001529087967355735599994659423828125 options contracts today.
  • EXLS is making at least a new 3-day high.
  • EXLS has a PE ratio of 34.
  • EXLS is mentioned 1.03 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.

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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 34. Currently there are 6 analysts that rate ExlService Holdings a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for ExlService Holdings has been 182,500 shares per day over the past 30 days. ExlService has a market cap of $1.5 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.42 and a short float of 1.8% with 2.29 days to cover. Shares are up 55.8% year-to-date as of the close of trading on Tuesday.

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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, good cash flow from operations, expanding profit margins and solid stock price performance. 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 27.0%. Since the same quarter one year prior, revenues rose by 23.8%. 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 3.05, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has significantly increased by 65.43% to $27.38 million when compared to the same quarter last year. In addition, EXLSERVICE HOLDINGS INC has also vastly surpassed the industry average cash flow growth rate of -11.27%.
  • 36.88% 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. Regardless of the strong results of the gross profit margin, the net profit margin of 9.27% trails the industry average.
  • Powered by its strong earnings growth of 144.44% and other important driving factors, this stock has surged by 63.38% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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.

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