Trade-Ideas LLC identified

TAL Education Group

(

XRS

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

  • XRS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.7 million.
  • XRS has traded 38.13430000000000319460013997741043567657470703125 options contracts today.
  • XRS is making at least a new 3-day high.
  • XRS has a PE ratio of 24.
  • XRS is mentioned 1.06 times per day on StockTwits.
  • XRS has not yet been mentioned on StockTwits today.
  • XRS is currently in the upper 20% of its 1-year range.
  • XRS is in the upper 35% of its 20-day range.
  • XRS is in the upper 45% of its 5-day range.
  • XRS is currently trading above yesterday's high.

TheStreet Recommends

'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 XRS:

TAL Education Group, through its subsidiaries, provides K-12 after-school tutoring services in the People's Republic of China. XRS has a PE ratio of 24. Currently there are 3 analysts that rate TAL Education Group a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for TAL Education Group has been 364,900 shares per day over the past 30 days. TAL Education Group has a market cap of $2.9 billion and is part of the services sector and diversified services industry. Shares are up 31.8% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates TAL Education Group 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, growth in earnings per share, increase in net income and solid stock price performance. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 11.8%. Since the same quarter one year prior, revenues rose by 45.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.66, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
  • TAL EDUCATION GROUP has improved earnings per share by 35.3% 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, TAL EDUCATION GROUP increased its bottom line by earning $0.81 versus $0.75 in the prior year. This year, the market expects an improvement in earnings ($1.23 versus $0.81).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Diversified Consumer Services industry. The net income increased by 42.0% when compared to the same quarter one year prior, rising from $13.35 million to $18.95 million.
  • 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. Although other factors naturally played a role, the company's strong earnings growth was key. 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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