Trade-Ideas LLC identified

Scholastic

(

SCHL

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

  • SCHL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.6 million.
  • SCHL has traded 3.26869999999999993889332472463138401508331298828125 options contracts today.
  • SCHL is making at least a new 3-day high.
  • SCHL has a PE ratio of 33.
  • SCHL is mentioned 1.68 times per day on StockTwits.
  • SCHL has not yet been mentioned on StockTwits today.
  • SCHL is currently in the upper 20% of its 1-year range.
  • SCHL is in the upper 35% of its 20-day range.
  • SCHL is in the upper 45% of its 5-day range.
  • SCHL 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 SCHL:

Scholastic Corporation, together with its subsidiaries, publishes and distributes children's books worldwide. It operates through three segments: Children's Book Publishing and Distribution, Education, and International. The stock currently has a dividend yield of 1.5%. SCHL has a PE ratio of 33. Currently there are 2 analysts that rate Scholastic a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Scholastic has been 109,800 shares per day over the past 30 days. Scholastic has a market cap of $1.4 billion and is part of the services sector and media industry. The stock has a beta of 0.77 and a short float of 11.2% with 13.37 days to cover. Shares are up 6.6% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Scholastic as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • SCHL's revenue growth has slightly outpaced the industry average of 3.2%. Since the same quarter one year prior, revenues slightly increased by 5.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • SCHL's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • SCHOLASTIC CORP reported significant earnings per share improvement 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 year. We feel that this trend should continue. During the past fiscal year, SCHOLASTIC CORP increased its bottom line by earning $1.18 versus $0.39 in the prior year. This year, the market expects an improvement in earnings ($1.69 versus $1.18).
  • Net operating cash flow has increased to $72.70 million or 25.34% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 7.11%.
  • The gross profit margin for SCHOLASTIC CORP is rather high; currently it is at 58.60%. 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 6.61% trails the industry average.

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