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 Omnicell as such a stock due to the following factors:
- OMCL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.2 million.
- OMCL is making at least a new 3-day high.
- OMCL has a PE ratio of 35.3.
- OMCL is mentioned 0.35 times per day on StockTwits.
- OMCL has not yet been mentioned on StockTwits today.
- OMCL is currently in the upper 20% of its 1-year range.
- OMCL is in the upper 35% of its 20-day range.
- OMCL is in the upper 45% of its 5-day range.
- OMCL 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 OMCL:
Omnicell, Inc. provides automation solutions for medication and supply management in healthcare worldwide. The company operates in two segments, Acute Care and Non-Acute Care. OMCL has a PE ratio of 35.3. Currently there are 4 analysts that rate Omnicell a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Omnicell has been 181,900 shares per day over the past 30 days. Omnicell has a market cap of $986.5 million and is part of the technology sector and computer software & services industry. The stock has a beta of 0.56 and a short float of 2.9% with 6.28 days to cover. Shares are up 10.3% year-to-date as of the close of trading on Thursday.
rates Omnicell as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the ratings report include:
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- OMNICELL INC has improved earnings per share by 23.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, OMNICELL INC increased its bottom line by earning $0.67 versus $0.47 in the prior year. This year, the market expects an improvement in earnings ($1.24 versus $0.67).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Technology industry. The net income increased by 29.5% when compared to the same quarter one year prior, rising from $6.02 million to $7.79 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 18.0%. Since the same quarter one year prior, revenues rose by 12.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- OMCL has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, OMCL has a quick ratio of 2.08, which demonstrates the ability of the company to cover short-term liquidity needs.
- You can view the full Omnicell Ratings Report.