Strong And Under The Radar: NutriSystem (NTRI)

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

  • NTRI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.3 million.
  • NTRI is making at least a new 3-day high.
  • NTRI has a PE ratio of 37.2.
  • NTRI is mentioned 1.68 times per day on StockTwits.
  • NTRI has not yet been mentioned on StockTwits today.
  • NTRI is currently in the upper 20% of its 1-year range.
  • NTRI is in the upper 35% of its 20-day range.
  • NTRI is in the upper 45% of its 5-day range.
  • NTRI 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 NTRI:

Nutrisystem, Inc., together with its subsidiaries, provides weight loss programs for women, men, and seniors in the United States. The company offers Nutrisystem program that consists of approximately 150 portion-controlled items, which serve as the foundation of a low glycemic index diet. The stock currently has a dividend yield of 3.6%. NTRI has a PE ratio of 37.2. Currently there are 2 analysts that rate NutriSystem a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for NutriSystem has been 374,200 shares per day over the past 30 days. NutriSystem has a market cap of $556.2 million and is part of the services sector and diversified services industry. The stock has a beta of 1.44 and a short float of 14.4% with 13.63 days to cover. Shares are up 17.6% 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 NutriSystem as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, notable return on equity and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • NUTRISYSTEM INC reported significant earnings per share improvement 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 year. We feel that this trend should continue. During the past fiscal year, NUTRISYSTEM INC turned its bottom line around by earning $0.25 versus -$0.11 in the prior year. This year, the market expects an improvement in earnings ($0.66 versus $0.25).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet & Catalog Retail industry. The net income increased by 1325.8% when compared to the same quarter one year prior, rising from $0.36 million to $5.08 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 13.0%. Since the same quarter one year prior, revenues slightly increased by 6.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Internet & Catalog Retail industry and the overall market, NUTRISYSTEM INC's return on equity significantly exceeds that of both the industry average and the S&P 500.

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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