Trade-Ideas: Electronics For Imaging (EFII) Is Today's Strong And Under The Radar Stock - TheStreet

Trade-Ideas LLC identified

Electronics for Imaging

(

EFII

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

  • EFII has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.9 million.
  • EFII has traded 15.4776000000000006906475391588173806667327880859375 options contracts today.
  • EFII is making at least a new 3-day high.
  • EFII has a PE ratio of 66.
  • EFII is mentioned 1.29 times per day on StockTwits.
  • EFII has not yet been mentioned on StockTwits today.
  • EFII is currently in the upper 20% of its 1-year range.
  • EFII is in the upper 35% of its 20-day range.
  • EFII is in the upper 45% of its 5-day range.
  • EFII 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 EFII:

Electronics For Imaging, Inc. provides digital inkjet printers, business process automation solutions, and color digital front ends (DFE) in the Untied States and internationally. EFII has a PE ratio of 66. Currently there are 2 analysts that rate Electronics for Imaging a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Electronics for Imaging has been 275,500 shares per day over the past 30 days. Electronics for Imaging has a market cap of $2.3 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.10 and a short float of 8.3% with 21.48 days to cover. Shares are up 12.7% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Electronics for Imaging as a

buy

. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance 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 net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Computers & Peripherals industry. The net income increased by 113.5% when compared to the same quarter one year prior, rising from $4.81 million to $10.26 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 25.2%. Since the same quarter one year prior, revenues rose by 15.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.37, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 2.86, which clearly demonstrates the ability to cover short-term cash needs.
  • 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.
  • ELECTRONICS FOR IMAGING INC reported significant earnings per share improvement in the most recent quarter compared to 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, ELECTRONICS FOR IMAGING INC reported lower earnings of $0.70 versus $2.24 in the prior year. This year, the market expects an improvement in earnings ($2.03 versus $0.70).

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