Today's Strong And Under The Radar Stock: National Instruments (NATI)

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

  • NATI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.8 million.
  • NATI is making at least a new 3-day high.
  • NATI has a PE ratio of 36.1.
  • NATI is mentioned 0.97 times per day on StockTwits.
  • NATI has not yet been mentioned on StockTwits today.
  • NATI is currently in the upper 20% of its 1-year range.
  • NATI is in the upper 35% of its 20-day range.
  • NATI is in the upper 45% of its 5-day range.
  • NATI 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 NATI:

National Instruments Corporation designs, manufactures, and sells tools to engineers and scientists worldwide. The stock currently has a dividend yield of 1.8%. NATI has a PE ratio of 36.1. Currently there is 1 analyst that rates National Instruments a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for National Instruments has been 283,100 shares per day over the past 30 days. National Instruments has a market cap of $4.1 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.08 and a short float of 1.7% with 5.53 days to cover. Shares are up 1.8% 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 National Instruments as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • NATI's revenue growth has slightly outpaced the industry average of 3.7%. Since the same quarter one year prior, revenues slightly increased by 8.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • NATI 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 2.55, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for NATIONAL INSTRUMENTS CORP is currently very high, coming in at 79.68%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 12.65% is above that of the industry average.
  • Net operating cash flow has increased to $72.28 million or 43.60% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 8.36%.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 151.8% when compared to the same quarter one year prior, rising from $15.76 million to $39.70 million.

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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