Trade-Ideas LLC identified

Stewart Information Services

(

STC

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

  • STC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.1 million.
  • STC has traded 4.791000000000000369482222595252096652984619140625 options contracts today.
  • STC is making at least a new 3-day high.
  • STC has a PE ratio of 373.
  • STC is mentioned 0.65 times per day on StockTwits.
  • STC has not yet been mentioned on StockTwits today.
  • STC is currently in the upper 20% of its 1-year range.
  • STC is in the upper 35% of its 20-day range.
  • STC is in the upper 45% of its 5-day range.
  • STC 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 STC:

Stewart Information Services Corporation provides title insurance and real estate services worldwide. The stock currently has a dividend yield of 2.4%. STC has a PE ratio of 373. Currently there are no analysts that rate Stewart Information Services a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Stewart Information Services has been 98,400 shares per day over the past 30 days. Stewart Information Services has a market cap of $912.5 million and is part of the financial sector and insurance industry. The stock has a beta of 0.80 and a short float of 2.1% with 3.63 days to cover. Shares are up 12% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Stewart Information Services 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, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 17.7%. Since the same quarter one year prior, revenues slightly increased by 9.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • STC's debt-to-equity ratio is very low at 0.13 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • Net operating cash flow has increased to $60.03 million or 27.70% when compared to the same quarter last year. In addition, STEWART INFORMATION SERVICES has also vastly surpassed the industry average cash flow growth rate of -61.22%.
  • STEWART INFORMATION SERVICES has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, STEWART INFORMATION SERVICES reported lower earnings of $1.19 versus $2.59 in the prior year. This year, the market expects an improvement in earnings ($2.05 versus $1.19).
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.

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