Don't Miss Today's Strong And Under The Radar Stock: LogMeIn (LOGM)

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

  • LOGM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.6 million.
  • LOGM is making at least a new 3-day high.
  • LOGM has a PE ratio of 766.5.
  • LOGM is mentioned 1.03 times per day on StockTwits.
  • LOGM has not yet been mentioned on StockTwits today.
  • LOGM is currently in the upper 20% of its 1-year range.
  • LOGM is in the upper 35% of its 20-day range.
  • LOGM is in the upper 45% of its 5-day range.
  • LOGM 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 LOGM:

LogMeIn, Inc. provides cloud-based collaboration, IT management, and customer service offerings to address the multi-device security, management, and accessibility requirements of the new mobile workplace in the United States, the United Kingdom, and internationally. LOGM has a PE ratio of 766.5. Currently there are 5 analysts that rate LogMeIn a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for LogMeIn has been 339,000 shares per day over the past 30 days. LogMeIn has a market cap of $1.1 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.15 and a short float of 9.9% with 6.90 days to cover. Shares are up 38.4% 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 LogMeIn as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 197.8% when compared to the same quarter one year prior, rising from -$1.36 million to $1.33 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 43.9%. Since the same quarter one year prior, revenues rose by 35.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • LOGMEIN INC reported significant earnings per share improvement 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, LOGMEIN INC swung to a loss, reporting -$0.32 versus $0.14 in the prior year. This year, the market expects an improvement in earnings ($1.09 versus -$0.32).
  • Powered by its strong earnings growth of 183.33% and other important driving factors, this stock has surged by 45.86% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Internet Software & Services industry and the overall market, LOGMEIN INC's return on equity significantly trails that of both the industry average and the S&P 500.

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