Today's Strong And Under The Radar Stock Is Blount International (BLT)

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

  • BLT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.4 million.
  • BLT is making at least a new 3-day high.
  • BLT has a PE ratio of 83.2.
  • BLT is mentioned 0.61 times per day on StockTwits.
  • BLT has not yet been mentioned on StockTwits today.
  • BLT is currently in the upper 20% of its 1-year range.
  • BLT is in the upper 35% of its 20-day range.
  • BLT is in the upper 45% of its 5-day range.
  • BLT 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 BLT:

Blount International, Inc., together with its subsidiaries, designs, manufactures, and markets equipment, replacement and component parts, and accessories to forestry, lawn and garden, farm, ranch, agriculture, and construction sectors primarily in the United States and Europe. BLT has a PE ratio of 83.2. Currently there are 2 analysts that rate Blount International a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Blount International has been 243,700 shares per day over the past 30 days. Blount International has a market cap of $782.2 million and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.73 and a short float of 3.3% with 4.29 days to cover. Shares are up 8.8% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Blount International as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 3.5%. Since the same quarter one year prior, revenues slightly increased by 6.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Machinery industry average. The net income increased by 31.7% when compared to the same quarter one year prior, rising from $9.33 million to $12.29 million.
  • Powered by its strong earnings growth of 31.57% and other important driving factors, this stock has surged by 35.47% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • BLOUNT INTL INC has improved earnings per share by 31.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BLOUNT INTL INC reported lower earnings of $0.10 versus $0.79 in the prior year. This year, the market expects an improvement in earnings ($0.95 versus $0.10).
  • The debt-to-equity ratio is very high at 2.26 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, BLT's quick ratio is somewhat strong at 1.15, demonstrating the ability to handle short-term liquidity needs.

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