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

  • AMRI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.5 million.
  • AMRI is making at least a new 3-day high.
  • AMRI has a PE ratio of 43.7.
  • AMRI is mentioned 1.26 times per day on StockTwits.
  • AMRI has not yet been mentioned on StockTwits today.
  • AMRI is currently in the upper 20% of its 1-year range.
  • AMRI is in the upper 35% of its 20-day range.
  • AMRI is in the upper 45% of its 5-day range.
  • AMRI 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 AMRI:

Albany Molecular Research, Inc., a contract research and manufacturing company, provides integrated drug discovery, development, and manufacturing services primarily in the United States, Europe, and Asia. AMRI has a PE ratio of 43.7. Currently there are 2 analysts that rate Albany Molecular Research a buy, 1 analyst rates it a sell, and none rate it a hold.

The average volume for Albany Molecular Research has been 383,900 shares per day over the past 30 days. Albany Molecular Research has a market cap of $709.6 million and is part of the health care sector and drugs industry. The stock has a beta of 1.72 and a short float of 25.5% with 17.29 days to cover. Shares are up 116% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Albany Molecular Research as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • Powered by its strong earnings growth of 237.50% and other important driving factors, this stock has surged by 83.26% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • ALBANY MOLECULAR RESH 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, ALBANY MOLECULAR RESH INC turned its bottom line around by earning $0.38 versus -$0.12 in the prior year. This year, the market expects an improvement in earnings ($0.89 versus $0.38).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Life Sciences Tools & Services industry. The net income increased by 250.5% when compared to the same quarter one year prior, rising from -$2.48 million to $3.72 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 21.7%. Since the same quarter one year prior, revenues rose by 15.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.48, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 4.03, which clearly demonstrates the ability to cover short-term cash needs.

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