Strong And Under The Radar: Balchem (BCPC)

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

  • BCPC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.8 million.
  • BCPC is making at least a new 3-day high.
  • BCPC has a PE ratio of 45.3.
  • BCPC is mentioned 0.55 times per day on StockTwits.
  • BCPC has not yet been mentioned on StockTwits today.
  • BCPC is currently in the upper 20% of its 1-year range.
  • BCPC is in the upper 35% of its 20-day range.
  • BCPC is in the upper 45% of its 5-day range.
  • BCPC 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in BCPC with the Ticky from Trade-Ideas. See the FREE profile for BCPC NOW at Trade-Ideas

More details on BCPC:

Balchem Corporation develops, manufactures, and sells specialty performance ingredients and products for the food, nutritional, feed, pharmaceutical, and medical sterilization industries in the United States and internationally. The stock currently has a dividend yield of 0.4%. BCPC has a PE ratio of 45.3. Currently there is 1 analyst that rates Balchem a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Balchem has been 149,000 shares per day over the past 30 days. Balchem has a market cap of $2.0 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 0.49 and a short float of 4.7% with 11.29 days to cover. Shares are up 11% 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 Balchem 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, good cash flow from operations, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • BCPC's very impressive revenue growth greatly exceeded the industry average of 9.8%. Since the same quarter one year prior, revenues leaped by 83.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.91, 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 the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.22, which illustrates the ability to avoid short-term cash problems.
  • BALCHEM CORP has improved earnings per share by 28.9% 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 two years. We feel that this trend should continue. During the past fiscal year, BALCHEM CORP increased its bottom line by earning $1.47 versus $1.33 in the prior year. This year, the market expects an improvement in earnings ($1.69 versus $1.47).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Chemicals industry average. The net income increased by 30.2% when compared to the same quarter one year prior, rising from $11.66 million to $15.18 million.
  • Net operating cash flow has increased to $21.64 million or 34.49% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 11.80%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

null

More from Markets

Aceto's Search for Deal May Be Slowed by DOJ Subpoena

Aceto's Search for Deal May Be Slowed by DOJ Subpoena

Dow and S&P 500 Finish Higher Amid Strong Corporate Earnings

Dow and S&P 500 Finish Higher Amid Strong Corporate Earnings

Veteran Foreign Affairs Expert Ian Bremmer Reveals How to Price Political Risk

Veteran Foreign Affairs Expert Ian Bremmer Reveals How to Price Political Risk

Investors Shouldn't Be Worried About Trump's Trade Tariffs: Ian Bremmer

Investors Shouldn't Be Worried About Trump's Trade Tariffs: Ian Bremmer

3 Hot Reads From TheStreet's Top Premium Columnists

3 Hot Reads From TheStreet's Top Premium Columnists