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 Dominion Resources ( D) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Dominion Resources as such a stock due to the following factors:
- D has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $164.4 million.
- D is making at least a new 3-day high.
- D has a PE ratio of 61.0.
- D is mentioned 0.60 times per day on StockTwits.
- D has not yet been mentioned on StockTwits today.
- D is currently in the upper 20% of its 1-year range.
- D is in the upper 35% of its 20-day range.
- D is in the upper 45% of its 5-day range.
- D 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. EXCLUSIVE OFFER: Get the inside scoop on opportunities in D with the Ticky from Trade-Ideas. See the FREE profile for D NOW at Trade-Ideas More details on D: Dominion Resources, Inc., together with its subsidiaries, engages in producing and transporting energy in the United States. The company operates through three segments: Dominion Virginia Power (DVP), Dominion Generation, and Dominion Energy. The stock currently has a dividend yield of 3.4%. D has a PE ratio of 61.0. Currently there are 8 analysts that rate Dominion Resources a buy, no analysts rate it a sell, and 6 rate it a hold. The average volume for Dominion Resources has been 2.7 million shares per day over the past 30 days. Dominion has a market cap of $38.2 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.11 and a short float of 2% with 4.08 days to cover. Shares are up 27.2% year to date as of the close of trading on Tuesday. 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 Dominion Resources as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, increase in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Highlights from the ratings report include:
- D's revenue growth has slightly outpaced the industry average of 5.4%. Since the same quarter one year prior, revenues slightly increased by 3.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 39.10% is the gross profit margin for DOMINION RESOURCES INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 16.57% is above that of the industry average.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Multi-Utilities industry. The net income increased by 172.2% when compared to the same quarter one year prior, rising from $209.00 million to $569.00 million.
- Net operating cash flow has slightly increased to $1,159.00 million or 8.92% when compared to the same quarter last year. Despite an increase in cash flow, DOMINION RESOURCES INC's cash flow growth rate is still lower than the industry average growth rate of 22.23%.
- Powered by its strong earnings growth of 126.66% and other important driving factors, this stock has surged by 31.04% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- You can view the full Dominion Resources Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.