Measurement Specialties (MEAS) Is Today's Strong And Under The Radar Stock

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

  • MEAS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.8 million.
  • MEAS is making at least a new 3-day high.
  • MEAS has a PE ratio of 48.7.
  • MEAS is mentioned 0.90 times per day on StockTwits.
  • MEAS has not yet been mentioned on StockTwits today.
  • MEAS is currently in the upper 20% of its 1-year range.
  • MEAS is in the upper 35% of its 20-day range.
  • MEAS is in the upper 45% of its 5-day range.
  • MEAS 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 MEAS:

Measurement Specialties, Inc. designs, develops, and manufactures sensors and sensor-based systems for original equipment manufacturers and end users. MEAS has a PE ratio of 48.7. Currently there are no analysts that rate Measurement Specialties a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Measurement Specialties has been 225,900 shares per day over the past 30 days. Measurement Specialties has a market cap of $1.4 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.68 and a short float of 4.3% with 4.46 days to cover. Shares are up 41.3% year-to-date as of the close of trading on Thursday.

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 Measurement Specialties as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • MEAS's revenue growth has slightly outpaced the industry average of 3.6%. Since the same quarter one year prior, revenues rose by 13.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Compared to its closing price of one year ago, MEAS's share price has jumped by 77.51%, exceeding the performance of the broader market during that same time frame. 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.
  • MEASUREMENT SPECIALTIES INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, MEASUREMENT SPECIALTIES INC increased its bottom line by earning $2.27 versus $2.11 in the prior year. This year, the market expects an improvement in earnings ($2.62 versus $2.27).
  • 42.90% is the gross profit margin for MEASUREMENT SPECIALTIES INC which we consider to be strong. Regardless of MEAS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 0.84% trails the industry average.
  • MEAS's debt-to-equity ratio of 0.66 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.42 is sturdy.

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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