Today's Strong And Under The Radar Stock: InterXion (INXN)

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

  • INXN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.8 million.
  • INXN is making at least a new 3-day high.
  • INXN has a PE ratio of 199.3.
  • INXN is mentioned 0.61 times per day on StockTwits.
  • INXN has not yet been mentioned on StockTwits today.
  • INXN is currently in the upper 20% of its 1-year range.
  • INXN is in the upper 35% of its 20-day range.
  • INXN is in the upper 45% of its 5-day range.
  • INXN 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 INXN:

InterXion Holding N.V. provides carrier-neutral colocation data center services in Europe. The company enables its customers to connect to a range of telecommunications carriers, Internet service providers, and other customers. INXN has a PE ratio of 199.3. Currently there are 8 analysts that rate InterXion a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for InterXion has been 245,900 shares per day over the past 30 days. InterXion has a market cap of $1.9 billion and is part of the technology sector and internet industry. The stock has a beta of 1.07 and a short float of 1.1% with 2.52 days to cover. Shares are up 19.6% year-to-date as of the close of trading on Wednesday.

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 InterXion as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, expanding profit margins 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 12.2%. Since the same quarter one year prior, revenues rose by 12.7%. 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 IT Services industry average. The net income increased by 29.6% when compared to the same quarter one year prior, rising from $8.72 million to $11.30 million.
  • Net operating cash flow has increased to $32.55 million or 16.23% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -2.61%.
  • The gross profit margin for INTERXION HOLDING NV is rather high; currently it is at 59.35%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 9.93% trails the industry average.
  • INTERXION HOLDING NV has improved earnings per share by 23.1% 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, INTERXION HOLDING NV reported lower earnings of $0.14 versus $0.60 in the prior year. This year, the market expects an improvement in earnings ($0.53 versus $0.14).

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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