Trade-Ideas LLC identified

MicroStrategy

(

MSTR

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

  • MSTR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.7 million.
  • MSTR has traded 56.91040000000000276259015663526952266693115234375 options contracts today.
  • MSTR is making at least a new 3-day high.
  • MSTR has a PE ratio of 37.
  • MSTR is mentioned 0.94 times per day on StockTwits.
  • MSTR has not yet been mentioned on StockTwits today.
  • MSTR is currently in the upper 20% of its 1-year range.
  • MSTR is in the upper 35% of its 20-day range.
  • MSTR is in the upper 45% of its 5-day range.
  • MSTR 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 MSTR:

MicroStrategy Incorporated designs, develops, markets, and sells enterprise-ready analytics, mobile, and security software platforms worldwide. MSTR has a PE ratio of 37. Currently there are 3 analysts that rate MicroStrategy a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for MicroStrategy has been 104,800 shares per day over the past 30 days. MicroStrategy has a market cap of $1.9 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.74 and a short float of 3.3% with 2.90 days to cover. Shares are up 28.2% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates MicroStrategy as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, notable return on equity, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:

  • Powered by its strong earnings growth of 314.28% and other important driving factors, this stock has surged by 40.85% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 317.3% when compared to the same quarter one year prior, rising from -$10.34 million to $22.47 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Software industry and the overall market, MICROSTRATEGY INC's return on equity exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for MICROSTRATEGY INC is currently very high, coming in at 84.43%. It has increased from the same quarter the previous year.
  • Net operating cash flow has significantly increased by 907.99% to $36.19 million when compared to the same quarter last year. In addition, MICROSTRATEGY INC has also vastly surpassed the industry average cash flow growth rate of -28.92%.

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