Heavy Early Morning Activity On NeuStar (NSR)

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 NeuStar ( NSR) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified NeuStar as such a stock due to the following factors:

  • NSR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $26.8 million.
  • NSR traded 88,390 shares today in the pre-market hours as of 9:17 AM, representing 11% of its average daily volume.

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More details on NSR:

NeuStar, Inc. provides technology and directory services to customers pursuant to various private commercial and government contracts worldwide. The company operates in three segments: Carrier Services, Enterprise Services, and Information Services. NSR has a PE ratio of 24.5. Currently there are 2 analysts that rate NeuStar a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for NeuStar has been 533,700 shares per day over the past 30 days. NeuStar has a market cap of $2.7 billion and is part of the technology sector and telecommunications industry. The stock has a beta of 1.22 and a short float of 13.4% with 11.00 days to cover. Shares are down 10.8% 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 NeuStar as a buy. 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, growth in earnings per share, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 17.7%. Since the same quarter one year prior, revenues slightly increased by 7.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.99, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with this, the company maintains a quick ratio of 3.54, which clearly demonstrates the ability to cover short-term cash needs.
  • NEUSTAR INC has improved earnings per share by 7.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, NEUSTAR INC increased its bottom line by earning $2.31 versus $1.66 in the prior year. This year, the market expects an improvement in earnings ($3.45 versus $2.31).
  • Net operating cash flow has increased to $76.21 million or 27.47% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -4.66%.

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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