HD Supply Holdings (HDS) Is Today's Strong And Under The Radar Stock

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

  • HDS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $32.4 million.
  • HDS is making at least a new 3-day high.
  • HDS is mentioned 0.97 times per day on StockTwits.
  • HDS has not yet been mentioned on StockTwits today.
  • HDS is currently in the upper 20% of its 1-year range.
  • HDS is in the upper 35% of its 20-day range.
  • HDS is in the upper 45% of its 5-day range.
  • HDS 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 HDS with the Ticky from Trade-Ideas. See the FREE profile for HDS NOW at Trade-Ideas

More details on HDS:

HD Supply Holdings, Inc. operates as an industrial distributor in North America. Currently there are 9 analysts that rate HD Supply Holdings a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for HD Supply Holdings has been 1.7 million shares per day over the past 30 days. HD Supply has a market cap of $6.4 billion and is part of the services sector and wholesale industry. Shares are up 11.6% year-to-date as of the close of trading on Monday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates HD Supply Holdings as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and poor profit margins.

Highlights from the ratings report include:
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Trading Companies & Distributors industry. The net income has significantly decreased by 40.9% when compared to the same quarter one year ago, falling from -$66.00 million to -$93.00 million.
  • The gross profit margin for HD SUPPLY HOLDINGS INC is currently lower than what is desirable, coming in at 28.78%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -4.63% is significantly below that of the industry average.
  • Net operating cash flow has increased to $174.00 million or 21.67% when compared to the same quarter last year. Despite an increase in cash flow, HD SUPPLY HOLDINGS INC's average is still marginally south of the industry average growth rate of 23.33%.
  • HD SUPPLY HOLDINGS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, HD SUPPLY HOLDINGS INC continued to lose money by earning -$0.03 versus -$1.15 in the prior year. This year, the market expects an improvement in earnings ($1.92 versus -$0.03).
  • Compared to its closing price of one year ago, HDS's share price has jumped by 25.51%, exceeding the performance of the broader market during that same time frame. Regarding the future course of this stock, we feel that the risks involved in investing in HDS do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%