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

  • LOGM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.3 million.
  • LOGM is making at least a new 3-day high.
  • LOGM is mentioned 1.83 times per day on StockTwits.
  • LOGM has not yet been mentioned on StockTwits today.
  • LOGM is currently in the upper 20% of its 1-year range.
  • LOGM is in the upper 35% of its 20-day range.
  • LOGM is in the upper 45% of its 5-day range.
  • LOGM 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 LOGM:

LogMeIn, Inc. provides cloud-based collaboration, IT management, and customer service offerings to address the multi-device security, management, and accessibility requirements of the new mobile workplace in the United States, the United Kingdom, and internationally. Currently there are 5 analysts that rate LogMeIn a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for LogMeIn has been 340,700 shares per day over the past 30 days. LogMeIn has a market cap of $1.3 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.14 and a short float of 20.8% with 12.44 days to cover. Shares are up 55.6% 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 LogMeIn as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, good cash flow from operations and solid stock price performance. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • LOGM's revenue growth has slightly outpaced the industry average of 27.8%. Since the same quarter one year prior, revenues rose by 35.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • LOGM 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. To add to this, LOGM has a quick ratio of 1.59, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 4221.4% when compared to the same quarter one year prior, rising from -$0.06 million to $2.31 million.
  • Net operating cash flow has significantly increased by 175.18% to $13.48 million when compared to the same quarter last year. In addition, LOGMEIN INC has also vastly surpassed the industry average cash flow growth rate of 25.51%.
  • This stock has managed to rise its share value by 61.90% over the past twelve months. 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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