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

  • EXAM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.7 million.
  • EXAM is making at least a new 3-day high.
  • EXAM is mentioned 1.00 times per day on StockTwits.
  • EXAM has not yet been mentioned on StockTwits today.
  • EXAM is currently in the upper 20% of its 1-year range.
  • EXAM is in the upper 35% of its 20-day range.
  • EXAM is in the upper 45% of its 5-day range.
  • EXAM 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 EXAM:

ExamWorks Group, Inc., together with its subsidiaries, provides independent medical examinations (IMEs), peer and bill reviews, Medicare compliance, and other related services. The company operates through four segments: the United States, Canada, the United Kingdom, and Australia. Currently there are 2 analysts that rate ExamWorks Group a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for ExamWorks Group has been 363,900 shares per day over the past 30 days. ExamWorks Group has a market cap of $1.5 billion and is part of the financial sector and insurance industry. The stock has a beta of 1.53 and a short float of 14.1% with 7.34 days to cover. Shares are up 26.6% 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 ExamWorks Group as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including premium valuation and generally higher debt management risk.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 20.0%. Since the same quarter one year prior, revenues rose by 33.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • EXAMWORKS GROUP 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 year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, EXAMWORKS GROUP INC continued to lose money by earning -$0.28 versus -$0.45 in the prior year. This year, the market expects an improvement in earnings ($0.17 versus -$0.28).
  • 36.01% is the gross profit margin for EXAMWORKS GROUP 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 1.67% trails the industry average.
  • The debt-to-equity ratio of 1.36 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, EXAM's quick ratio is somewhat strong at 1.19, demonstrating the ability to handle short-term liquidity needs.

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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