Envestnet (ENV) Highlighted As Strong And Under The Radar Stock Of The Day

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

  • ENV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $26.6 million.
  • ENV is making at least a new 3-day high.
  • ENV has a PE ratio of 168.7.
  • ENV is mentioned 0.90 times per day on StockTwits.
  • ENV has not yet been mentioned on StockTwits today.
  • ENV is currently in the upper 20% of its 1-year range.
  • ENV is in the upper 35% of its 20-day range.
  • ENV is in the upper 45% of its 5-day range.
  • ENV 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 ENV:

Envestnet, Inc., together with its subsidiaries, provides wealth management software and services to independent financial advisors and financial institutions in the United States and internationally. ENV has a PE ratio of 168.7. Currently there are 4 analysts that rate Envestnet a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Envestnet has been 255,000 shares per day over the past 30 days. Envestnet has a market cap of $1.7 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.39 and a short float of 4.5% with 2.39 days to cover. Shares are up 25.1% year-to-date as of the close of trading on Friday.

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 Envestnet 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, robust revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • ENVESTNET 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, ENVESTNET INC increased its bottom line by earning $0.11 versus $0.01 in the prior year. This year, the market expects an improvement in earnings ($0.78 versus $0.11).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 188.5% when compared to the same quarter one year prior, rising from $1.31 million to $3.77 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 28.9%. Since the same quarter one year prior, revenues rose by 26.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Although ENV's debt-to-equity ratio of 0.17 is very low, it is currently higher than that of the industry average. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.48, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has significantly increased by 283.25% to $16.93 million when compared to the same quarter last year. In addition, ENVESTNET INC has also vastly surpassed the industry average cash flow growth rate of 26.57%.

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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