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

  • TRI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $28.7 million.
  • TRI is making at least a new 3-day high.
  • TRI has a PE ratio of 75.9.
  • TRI is mentioned 1.48 times per day on StockTwits.
  • TRI has not yet been mentioned on StockTwits today.
  • TRI is currently in the upper 20% of its 1-year range.
  • TRI is in the upper 35% of its 20-day range.
  • TRI is in the upper 45% of its 5-day range.
  • TRI 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 TRI:

Thomson Reuters Corporation provides intelligent information for businesses and professionals worldwide. The company sells electronic content and services to professionals, primarily on a subscription basis. The stock currently has a dividend yield of 3.5%. TRI has a PE ratio of 75.9. Currently there are 4 analysts that rate Thomson Reuters a buy, 1 analyst rates it a sell, and 8 rate it a hold.

The average volume for Thomson Reuters has been 737,600 shares per day over the past 30 days. Thomson Reuters has a market cap of $30.4 billion and is part of the services sector and media industry. Shares are up 0.3% 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 Thomson Reuters as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.4%. Since the same quarter one year prior, revenues slightly increased by 0.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The current debt-to-equity ratio, 0.59, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.71 is somewhat weak and could be cause for future problems.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Media industry and the overall market on the basis of return on equity, THOMSON-REUTERS CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • THOMSON-REUTERS CORP's earnings per share declined by 15.2% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, THOMSON-REUTERS CORP reported lower earnings of $0.15 versus $2.37 in the prior year.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Media industry average. The net income has decreased by 14.8% when compared to the same quarter one year ago, dropping from $271.00 million to $231.00 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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