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

  • PACW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $23.5 million.
  • PACW is making at least a new 3-day high.
  • PACW has a PE ratio of 37.1.
  • PACW is mentioned 0.74 times per day on StockTwits.
  • PACW has not yet been mentioned on StockTwits today.
  • PACW is currently in the upper 20% of its 1-year range.
  • PACW is in the upper 35% of its 20-day range.
  • PACW is in the upper 45% of its 5-day range.
  • PACW 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 PACW with the Ticky from Trade-Ideas. See the FREE profile for PACW NOW at Trade-Ideas

More details on PACW:

PacWest Bancorp operates as the holding company for Pacific Western Bank that provides commercial banking products and services to individuals, professionals, and small to mid-sized businesses in the United States. It accepts demand, money market, and time deposits. The stock currently has a dividend yield of 4.3%. PACW has a PE ratio of 37.1. Currently there are 7 analysts that rate PacWest Bancorp a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for PacWest Bancorp has been 619,400 shares per day over the past 30 days. PacWest has a market cap of $4.7 billion and is part of the financial sector and banking industry. The stock has a beta of 1.54 and a short float of 5.9% with 5.12 days to cover. Shares are up 10.2% 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 PacWest Bancorp as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, good cash flow from operations, increase in stock price during the past year and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • PACW's very impressive revenue growth greatly exceeded the industry average of 4.6%. Since the same quarter one year prior, revenues leaped by 142.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 157.7% when compared to the same quarter one year prior, rising from $24.16 million to $62.27 million.
  • Net operating cash flow has significantly increased by 295.77% to $96.65 million when compared to the same quarter last year. In addition, PACWEST BANCORP has also vastly surpassed the industry average cash flow growth rate of -63.98%.
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Looking ahead, the stock's 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 the other strengths this company displays justify these higher price levels.
  • PACWEST BANCORP has improved earnings per share by 13.2% in the most recent quarter compared to the same quarter a year ago. 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, PACWEST BANCORP reported lower earnings of $1.08 versus $1.53 in the prior year. This year, the market expects an improvement in earnings ($1.95 versus $1.08).

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

null