Trade-Ideas LLC identified

Synopsys

(

SNPS

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

  • SNPS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $56.1 million.
  • SNPS has traded 73.283600000000006957634468562901020050048828125 options contracts today.
  • SNPS is making at least a new 3-day high.
  • SNPS has a PE ratio of 34.
  • SNPS is mentioned 1.68 times per day on StockTwits.
  • SNPS has not yet been mentioned on StockTwits today.
  • SNPS is currently in the upper 20% of its 1-year range.
  • SNPS is in the upper 35% of its 20-day range.
  • SNPS is in the upper 45% of its 5-day range.
  • SNPS 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 SNPS:

Synopsys, Inc. provides electronic design automation (EDA) software products used to design and test integrated circuits worldwide. SNPS has a PE ratio of 34. Currently there are 4 analysts that rate Synopsys a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Synopsys has been 809,500 shares per day over the past 30 days. Synopsys has a market cap of $7.8 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.03 and a short float of 3.5% with 3.79 days to cover. Shares are up 14.2% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Synopsys as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, revenue growth, reasonable valuation levels and good cash flow from operations. 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 Software industry. The net income increased by 24.8% when compared to the same quarter one year prior, going from $55.60 million to $69.38 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 8.8%. Since the same quarter one year prior, revenues slightly increased by 8.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • 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. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • Net operating cash flow has increased to $222.43 million or 43.43% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 21.84%.

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