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

  • CRRC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.2 million.
  • CRRC is making at least a new 3-day high.
  • CRRC has a PE ratio of 36.4.
  • CRRC is mentioned 2.00 times per day on StockTwits.
  • CRRC has not yet been mentioned on StockTwits today.
  • CRRC is currently in the upper 20% of its 1-year range.
  • CRRC is in the upper 35% of its 20-day range.
  • CRRC is in the upper 45% of its 5-day range.
  • CRRC 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 CRRC:

Courier Corporation, together with its subsidiaries, prints, publishes, and sells books. It operates in two segments, Book Manufacturing and Publishing. The stock currently has a dividend yield of 3.4%. CRRC has a PE ratio of 36.4.

The average volume for Courier has been 130,100 shares per day over the past 30 days. Courier has a market cap of $281.3 million and is part of the services sector and media industry. The stock has a beta of 0.39 and a short float of 0.3% with 0.20 days to cover. Shares are up 64.6% 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 Courier as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures 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, CRRC's share price has jumped by 44.18%, 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, CRRC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • CRRC's debt-to-equity ratio is very low at 0.26 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, CRRC has a quick ratio of 1.52, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 35.28% is the gross profit margin for COURIER CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 2.70% trails the industry average.
  • CRRC, with its decline in revenue, underperformed when compared the industry average of 2.9%. Since the same quarter one year prior, revenues slightly dropped by 8.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • COURIER CORP's earnings per share declined by 36.0% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, COURIER CORP reported lower earnings of $0.78 versus $1.00 in the prior year. This year, the market expects an improvement in earnings ($1.00 versus $0.78).

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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