Strong And Under The Radar Today: Omnicell (OMCL)

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

  • OMCL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.9 million.
  • OMCL is making at least a new 3-day high.
  • OMCL has a PE ratio of 41.2.
  • OMCL is mentioned 1.26 times per day on StockTwits.
  • OMCL has not yet been mentioned on StockTwits today.
  • OMCL is currently in the upper 20% of its 1-year range.
  • OMCL is in the upper 35% of its 20-day range.
  • OMCL is in the upper 45% of its 5-day range.
  • OMCL 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 OMCL:

Omnicell, Inc. provides automation solutions for medication and supply management in healthcare worldwide. The company operates in two segments, Acute Care and Non-Acute Care. OMCL has a PE ratio of 41.2. Currently there are 3 analysts that rate Omnicell a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Omnicell has been 190,100 shares per day over the past 30 days. Omnicell has a market cap of $1.1 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.62 and a short float of 2.5% with 5.44 days to cover. Shares are up 26.7% 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 Omnicell as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, robust revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Compared to its closing price of one year ago, OMCL's share price has jumped by 33.76%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, OMCL should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 20.8%. Since the same quarter one year prior, revenues rose by 19.7%. 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.
  • OMCL 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, OMCL has a quick ratio of 1.84, which demonstrates the ability of the company to cover short-term liquidity needs.
  • OMNICELL INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, OMNICELL INC increased its bottom line by earning $0.67 versus $0.47 in the prior year. This year, the market expects an improvement in earnings ($1.22 versus $0.67).

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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