Trade-Ideas LLC identified

Pegasystems

(

PEGA

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

  • PEGA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.7 million.
  • PEGA has traded 29.895499999999998408384271897375583648681640625 options contracts today.
  • PEGA is making at least a new 3-day high.
  • PEGA has a PE ratio of 58.
  • PEGA is mentioned 1.32 times per day on StockTwits.
  • PEGA has not yet been mentioned on StockTwits today.
  • PEGA is currently in the upper 20% of its 1-year range.
  • PEGA is in the upper 35% of its 20-day range.
  • PEGA is in the upper 45% of its 5-day range.
  • PEGA 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 PEGA with the Ticky from Trade-Ideas. See the FREE profile for PEGA NOW at Trade-Ideas

More details on PEGA:

Pegasystems, Inc. develops, markets, licenses, and supports software to automate complex and changing business processes in the United States and internationally. The stock currently has a dividend yield of 0.5%. PEGA has a PE ratio of 58. Currently there are 2 analysts that rate Pegasystems a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Pegasystems has been 198,400 shares per day over the past 30 days. Pegasystems has a market cap of $2.0 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.37 and a short float of 2.2% with 4.75 days to cover. Shares are down 3.6% 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 Pegasystems 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 growth in earnings per share. 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 came in higher than the industry average of 7.1%. Since the same quarter one year prior, revenues rose by 21.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • PEGA 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, PEGA has a quick ratio of 1.63, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Software industry average. The net income increased by 4.2% when compared to the same quarter one year prior, going from $20.10 million to $20.96 million.
  • Net operating cash flow has significantly increased by 368.55% to $7.60 million when compared to the same quarter last year. In addition, PEGASYSTEMS INC has also vastly surpassed the industry average cash flow growth rate of 19.64%.
  • PEGASYSTEMS INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, PEGASYSTEMS INC increased its bottom line by earning $0.46 versus $0.41 in the prior year. This year, the market expects an improvement in earnings ($0.96 versus $0.46).

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.