Badger Meter (BMI) 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.

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

  • BMI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.4 million.
  • BMI is making at least a new 3-day high.
  • BMI has a PE ratio of 32.
  • BMI is mentioned 1.87 times per day on StockTwits.
  • BMI has not yet been mentioned on StockTwits today.
  • BMI is currently in the upper 20% of its 1-year range.
  • BMI is in the upper 35% of its 20-day range.
  • BMI is in the upper 45% of its 5-day range.
  • BMI 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 BMI:

Badger Meter, Inc. manufactures and sells flow measurement and control technologies related products. The stock currently has a dividend yield of 1.2%. BMI has a PE ratio of 32. Currently there is 1 analyst that rates Badger Meter a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Badger Meter has been 65,800 shares per day over the past 30 days. Badger Meter has a market cap of $927.4 million and is part of the technology sector and electronics industry. The stock has a beta of 0.69 and a short float of 3.8% with 10.74 days to cover. Shares are up 6.4% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Badger Meter as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • BMI's revenue growth has slightly outpaced the industry average of 0.5%. Since the same quarter one year prior, revenues slightly increased by 0.2%. 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.
  • Net operating cash flow has significantly increased by 1066.95% to $6.78 million when compared to the same quarter last year. In addition, BADGER METER INC has also vastly surpassed the industry average cash flow growth rate of -26.92%.
  • 41.51% is the gross profit margin for BADGER METER INC 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 5.05% trails the industry average.
  • Compared to its closing price of one year ago, BMI's share price has jumped by 27.21%, 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.
  • BADGER METER INC's earnings per share declined by 9.4% 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, BADGER METER INC increased its bottom line by earning $2.06 versus $1.71 in the prior year. This year, the market expects an improvement in earnings ($2.29 versus $2.06).

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