Today's Strong And Under The Radar Stock Is RE/MAX Holdings (RMAX)

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 RE/MAX Holdings ( RMAX) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified RE/MAX Holdings as such a stock due to the following factors:

  • RMAX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.7 million.
  • RMAX is making at least a new 3-day high.
  • RMAX has a PE ratio of 31.7.
  • RMAX is mentioned 0.71 times per day on StockTwits.
  • RMAX has not yet been mentioned on StockTwits today.
  • RMAX is currently in the upper 20% of its 1-year range.
  • RMAX is in the upper 35% of its 20-day range.
  • RMAX is in the upper 45% of its 5-day range.
  • RMAX 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 RMAX:

RE/MAX Holdings, Inc. operates as a franchisor for residential and commercial real estate brokerage services in the United States and internationally. It operates in two segments, Real Estate Franchise Services, and Brokerage and Other. The stock currently has a dividend yield of 0.8%. RMAX has a PE ratio of 31.7. Currently there are 3 analysts that rate RE/MAX Holdings a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for RE/MAX Holdings has been 54,700 shares per day over the past 30 days. RE/MAX has a market cap of $375.8 million and is part of the financial sector and real estate industry. Shares are up 2% year-to-date as of the close of trading on Monday.

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 RE/MAX Holdings as a hold. 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 and good cash flow from operations. However, as a counter to these strengths, we find that net income has been generally deteriorating over time.

Highlights from the ratings report include:
  • RMAX's revenue growth has slightly outpaced the industry average of 7.3%. Since the same quarter one year prior, revenues slightly increased by 9.7%. 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 debt-to-equity ratio is somewhat low, currently at 0.85, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with this, the company maintains a quick ratio of 3.13, which clearly demonstrates the ability to cover short-term cash needs.
  • Compared to other companies in the Real Estate Management & Development industry and the overall market, RE/MAX HOLDINGS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • RE/MAX HOLDINGS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This year, the market expects an improvement in earnings ($1.52 versus -$1.25).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Real Estate Management & Development industry. The net income has significantly decreased by 44.5% when compared to the same quarter one year ago, falling from $7.70 million to $4.28 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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