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

  • BYI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $49.8 million.
  • BYI is making at least a new 3-day high.
  • BYI has a PE ratio of 36.0.
  • BYI is mentioned 1.74 times per day on StockTwits.
  • BYI has not yet been mentioned on StockTwits today.
  • BYI is currently in the upper 20% of its 1-year range.
  • BYI is in the upper 35% of its 20-day range.
  • BYI is in the upper 45% of its 5-day range.
  • BYI 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 BYI:

Bally Technologies, Inc., a gaming company, designs, manufactures, operates, and distributes electronic gaming machines (EGM), network and casino-management systems, table game products, and interactive applications in the United States, Canada, and internationally. BYI has a PE ratio of 36.0. Currently there are 3 analysts that rate Bally Technologies a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Bally Technologies has been 604,400 shares per day over the past 30 days. Bally has a market cap of $3.2 billion and is part of the services sector and leisure industry. The stock has a beta of 1.43 and a short float of 3.4% with 2.08 days to cover. Shares are up 5.7% year-to-date as of the close of trading on Wednesday.

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 Bally Technologies as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 9.4%. Since the same quarter one year prior, revenues rose by 28.7%. 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 gross profit margin for BALLY TECHNOLOGIES INC is currently very high, coming in at 72.45%. Regardless of BYI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 8.99% trails the industry average.
  • BALLY TECHNOLOGIES INC's earnings per share declined by 22.7% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, BALLY TECHNOLOGIES INC reported lower earnings of $2.52 versus $3.45 in the prior year. This year, the market expects an improvement in earnings ($4.90 versus $2.52).
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • Net operating cash flow has declined marginally to $50.95 million or 6.64% when compared to the same quarter last year. Despite a decrease in cash flow BALLY TECHNOLOGIES INC is still fairing well by exceeding its industry average cash flow growth rate of -27.89%.

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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