Luminex (LMNX) Showing Signs Of Being Strong And Under The Radar

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

  • LMNX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.8 million.
  • LMNX is making at least a new 3-day high.
  • LMNX has a PE ratio of 48.1.
  • LMNX is mentioned 0.10 times per day on StockTwits.
  • LMNX has not yet been mentioned on StockTwits today.
  • LMNX is currently in the upper 20% of its 1-year range.
  • LMNX is in the upper 35% of its 20-day range.
  • LMNX is in the upper 45% of its 5-day range.
  • LMNX 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in LMNX with the Ticky from Trade-Ideas. See the FREE profile for LMNX NOW at Trade-Ideas

More details on LMNX:

Luminex Corporation develops, manufactures, and sells proprietary biological testing technologies and products for the life sciences and diagnostic industries. LMNX has a PE ratio of 48.1. Currently there is 1 analyst that rates Luminex a buy, 2 analysts rate it a sell, and 4 rate it a hold.

The average volume for Luminex has been 193,100 shares per day over the past 30 days. Luminex has a market cap of $822.8 million and is part of the health care sector and health services industry. The stock has a beta of 0.57 and a short float of 9.8% with 21.64 days to cover. Shares are up 0.1% year-to-date as of the close of trading on Monday.

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 Luminex as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

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 Life Sciences Tools & Services industry. The net income increased by 27.9% when compared to the same quarter one year prior, rising from $3.70 million to $4.73 million.
  • LMNX's revenue growth trails the industry average of 22.2%. Since the same quarter one year prior, revenues slightly increased by 2.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • LMNX 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 this, the company maintains a quick ratio of 5.17, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has significantly increased by 379.34% to $10.23 million when compared to the same quarter last year. In addition, LUMINEX CORP has also vastly surpassed the industry average cash flow growth rate of 68.24%.
  • LUMINEX CORP has improved earnings per share by 22.2% 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, LUMINEX CORP reported lower earnings of $0.17 versus $0.29 in the prior year. This year, the market expects an improvement in earnings ($0.49 versus $0.17).

null

If you liked this article you might like

Biotech Movers: Luminex, Exelixis, AMAG Pharmaceuticals

Biotech Movers: Luminex, Exelixis, AMAG Pharmaceuticals

Analysts' Actions -- Kimberly-Clark, IberiaBank, Ionis Pharma, Actuant and More

Analysts' Actions -- Kimberly-Clark, IberiaBank, Ionis Pharma, Actuant and More

How to Cash in on the Fight Against the Zika Virus

How to Cash in on the Fight Against the Zika Virus

Strong On High Volume: Luminex (LMNX)

Strong On High Volume: Luminex (LMNX)

Trade-Ideas: Luminex (LMNX) Is Today's Strong On High Relative Volume Stock

Trade-Ideas: Luminex (LMNX) Is Today's Strong On High Relative Volume Stock