Don't Miss Today's Strong And Under The Radar Stock: NetScout Systems (NTCT)

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

  • NTCT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.2 million.
  • NTCT is making at least a new 3-day high.
  • NTCT has a PE ratio of 35.6.
  • NTCT is mentioned 0.97 times per day on StockTwits.
  • NTCT has not yet been mentioned on StockTwits today.
  • NTCT is currently in the upper 20% of its 1-year range.
  • NTCT is in the upper 35% of its 20-day range.
  • NTCT is in the upper 45% of its 5-day range.
  • NTCT 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 NTCT:

NetScout Systems, Inc., together with its subsidiaries, designs, develops, manufactures, markets, licenses, sells, and supports network, application, and service assurance solutions. NTCT has a PE ratio of 35.6. Currently there are 3 analysts that rate NetScout Systems a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for NetScout Systems has been 213,100 shares per day over the past 30 days. NetScout Systems has a market cap of $1.9 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.87 and a short float of 4.6% with 7.57 days to cover. Shares are up 57.2% 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 NetScout Systems as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 11.6%. Since the same quarter one year prior, revenues rose by 31.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • NTCT has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.49, which illustrates the ability to avoid short-term cash problems.
  • Powered by its strong earnings growth of 125.00% and other important driving factors, this stock has surged by 83.91% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, NTCT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • NETSCOUT SYSTEMS INC reported significant earnings per share improvement 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, NETSCOUT SYSTEMS INC increased its bottom line by earning $1.17 versus $0.95 in the prior year. This year, the market expects an improvement in earnings ($1.79 versus $1.17).
  • 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 118.5% when compared to the same quarter one year prior, rising from $5.25 million to $11.48 million.

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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