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 Build-A-Bear Workshop ( BBW) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Build-A-Bear Workshop as such a stock due to the following factors:

  • BBW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.6 million.
  • BBW is making at least a new 3-day high.
  • BBW has a PE ratio of 46.8.
  • BBW is mentioned 1.27 times per day on StockTwits.
  • BBW has not yet been mentioned on StockTwits today.
  • BBW is currently in the upper 20% of its 1-year range.
  • BBW is in the upper 35% of its 20-day range.
  • BBW is in the upper 45% of its 5-day range.
  • BBW 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 BBW:

Build-A-Bear Workshop, Inc. operates as a specialty retailer of plush animals and related products. The company operates in three segments: Retail, International Franchising, and Commercial. BBW has a PE ratio of 46.8. Currently there are 3 analysts that rate Build-A-Bear Workshop a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Build-A-Bear Workshop has been 138,000 shares per day over the past 30 days. Build-A-Bear Workshop has a market cap of $260.5 million and is part of the services sector and specialty retail industry. The stock has a beta of 0.91 and a short float of 5.9% with 5.16 days to cover. Shares are up 105.2% year-to-date as of the close of trading on Friday.

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 Build-A-Bear Workshop as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • BBW's revenue growth has slightly outpaced the industry average of 1.0%. Since the same quarter one year prior, revenues slightly increased by 2.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • BUILD-A-BEAR WORKSHOP 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, BUILD-A-BEAR WORKSHOP INC continued to lose money by earning -$0.15 versus -$3.01 in the prior year. This year, the market expects an improvement in earnings ($0.51 versus -$0.15).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Specialty Retail industry. The net income increased by 234.4% when compared to the same quarter one year prior, rising from -$1.35 million to $1.82 million.
  • 49.23% is the gross profit margin for BUILD-A-BEAR WORKSHOP INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 2.10% trails the industry average.
  • Powered by its strong earnings growth of 225.00% and other important driving factors, this stock has surged by 110.67% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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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