Today's Strong And Under The Radar Stock Is Insperity (NSP)

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.

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

  • NSP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.9 million.
  • NSP is making at least a new 3-day high.
  • NSP has a PE ratio of 43.
  • NSP is mentioned 2.00 times per day on StockTwits.
  • NSP has not yet been mentioned on StockTwits today.
  • NSP is currently in the upper 20% of its 1-year range.
  • NSP is in the upper 35% of its 20-day range.
  • NSP is in the upper 45% of its 5-day range.
  • NSP 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 NSP:

Insperity, Inc. provides an array of human resources (HR) and business solutions to enhance business performance for small and medium-sized businesses in the United States. The stock currently has a dividend yield of 1.4%. NSP has a PE ratio of 43. Currently there are 2 analysts that rate Insperity a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Insperity has been 256,300 shares per day over the past 30 days. Insperity has a market cap of $1.3 billion and is part of the services sector and diversified services industry. Shares are up 56% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Insperity 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, increase in net income, notable return on equity and solid stock price performance. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 1.2%. Since the same quarter one year prior, revenues slightly increased by 9.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • NSP 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. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.06, which illustrates the ability to avoid short-term cash problems.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Professional Services industry. The net income increased by 44.1% when compared to the same quarter one year prior, rising from $9.56 million to $13.79 million.
  • Powered by its strong earnings growth of 45.94% and other important driving factors, this stock has surged by 72.63% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp 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 other strengths this company displays justify these higher price levels.
  • INSPERITY INC has improved earnings per share by 45.9% 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, INSPERITY INC reported lower earnings of $1.04 versus $1.25 in the prior year. This year, the market expects an improvement in earnings ($1.87 versus $1.04).

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