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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.

Trade-Ideas LLC identified




) 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 $6.2 million.
  • SCHL is making at least a new 3-day high.
  • SCHL has a PE ratio of 31.9.
  • SCHL is mentioned 1.57 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 operates as a children's publishing, education, and media company in the United States. The stock currently has a dividend yield of 1.5%. SCHL has a PE ratio of 31.9. Currently there is 1 analyst that rates Scholastic a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Scholastic has been 125,800 shares per day over the past 30 days. Scholastic has a market cap of $1.2 billion and is part of the services sector and media industry. The stock has a beta of 0.74 and a short float of 14.6% with 17.25 days to cover. Shares are up 8.8% year-to-date as of the close of trading on Friday.

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TheStreet Quant Ratings

rates Scholastic as a


. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 7.2%. Since the same quarter one year prior, revenues slightly increased by 2.3%. 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.
  • Net operating cash flow has significantly increased by 373.68% to $18.00 million when compared to the same quarter last year. In addition, SCHOLASTIC CORP has also vastly surpassed the industry average cash flow growth rate of 47.56%.
  • SCHL's debt-to-equity ratio is very low at 0.09 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.43 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • SCHOLASTIC CORP 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. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SCHOLASTIC CORP increased its bottom line by earning $1.34 versus $1.03 in the prior year. This year, the market expects an improvement in earnings ($1.82 versus $1.34).
  • 48.05% is the gross profit margin for SCHOLASTIC CORP which we consider to be strong. Regardless of SCHL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SCHL's net profit margin of -5.78% significantly underperformed when compared to the industry average.

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