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 or Stephanie Link.

Trade-Ideas LLC identified

OraSure Technologies

(

OSUR

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

  • OSUR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.8 million.
  • OSUR is making at least a new 3-day high.
  • OSUR has a PE ratio of 138.6.
  • OSUR is mentioned 1.58 times per day on StockTwits.
  • OSUR has not yet been mentioned on StockTwits today.
  • OSUR is currently in the upper 20% of its 1-year range.
  • OSUR is in the upper 35% of its 20-day range.
  • OSUR is in the upper 45% of its 5-day range.
  • OSUR 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 OSUR:

OraSure Technologies, Inc., together with its subsidiaries, develops, manufactures, markets, and sells oral fluid diagnostic products and specimen collection devices using its proprietary oral fluid technologies. OSUR has a PE ratio of 138.6. Currently there are 5 analysts that rate OraSure Technologies a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for OraSure Technologies has been 510,600 shares per day over the past 30 days. OraSure has a market cap of $543.8 million and is part of the health care sector and health services industry. The stock has a beta of 2.24 and a short float of 3.6% with 3.08 days to cover. Shares are down 2.7% year-to-date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates OraSure Technologies as a

hold

. 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 and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from the ratings report include:

  • OSUR's revenue growth has slightly outpaced the industry average of 4.6%. Since the same quarter one year prior, revenues rose by 12.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • OSUR has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 4.51, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for ORASURE TECHNOLOGIES INC is currently very high, coming in at 73.01%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, OSUR's net profit margin of 4.09% significantly trails the industry average.
  • Powered by its strong earnings growth of 166.66% and other important driving factors, this stock has surged by 43.49% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
  • 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 Health Care Equipment & Supplies industry and the overall market, ORASURE TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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