Sapient (SAPE) Showing Signs Of Being Strong And Under The Radar

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

  • SAPE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $25.8 million.
  • SAPE is making at least a new 3-day high.
  • SAPE has a PE ratio of 44.3.
  • SAPE is mentioned 0.74 times per day on StockTwits.
  • SAPE has not yet been mentioned on StockTwits today.
  • SAPE is currently in the upper 20% of its 1-year range.
  • SAPE is in the upper 35% of its 20-day range.
  • SAPE is in the upper 45% of its 5-day range.
  • SAPE 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 SAPE with the Ticky from Trade-Ideas. See the FREE profile for SAPE NOW at Trade-Ideas

More details on SAPE:

Sapient Corporation provides strategy, marketing, and technology services that enable clients identify and act upon opportunities to improve their business performance. It operates in three segments: SapientNitro, Sapient Global Markets, and Sapient Government Services. SAPE has a PE ratio of 44.3. Currently there are no analysts that rate Sapient a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Sapient has been 2.9 million shares per day over the past 30 days. Sapient has a market cap of $3.5 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.24 and a short float of 4% with 3.79 days to cover. Shares are up 43.1% 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 Sapient as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 6.3%. Since the same quarter one year prior, revenues slightly increased by 8.9%. 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.
  • SAPE 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, SAPE has a quick ratio of 1.86, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has significantly increased by 57.57% to $55.26 million when compared to the same quarter last year. In addition, SAPIENT CORP has also vastly surpassed the industry average cash flow growth rate of -1.61%.
  • Compared to its closing price of one year ago, SAPE's share price has jumped by 41.60%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • SAPIENT CORP's earnings per share declined by 15.8% 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, SAPIENT CORP increased its bottom line by earning $0.55 versus $0.41 in the prior year. This year, the market expects an improvement in earnings ($0.60 versus $0.55).

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

Striking Options: Earnings, Gold, & Nasdaq

Striking Options: Earnings, Gold, & Nasdaq

Dow Surges More Than 540 Points on Strong Bank Earnings; Nasdaq Gains 2.9%

Dow Surges More Than 540 Points on Strong Bank Earnings; Nasdaq Gains 2.9%

The Next Oil Boom: Excitement About Alaskan Crude Builds

The Next Oil Boom: Excitement About Alaskan Crude Builds

Citi Tops Trading Rivals as JPMorgan, Bank of America Falter

Citi Tops Trading Rivals as JPMorgan, Bank of America Falter

Would a Porsche IPO Price Double Like Ferrari's Did?

Would a Porsche IPO Price Double Like Ferrari's Did?