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

  • SIRO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $31.8 million.
  • SIRO is making at least a new 3-day high.
  • SIRO has a PE ratio of 27.
  • SIRO is mentioned 1.52 times per day on StockTwits.
  • SIRO has not yet been mentioned on StockTwits today.
  • SIRO is currently in the upper 20% of its 1-year range.
  • SIRO is in the upper 35% of its 20-day range.
  • SIRO is in the upper 45% of its 5-day range.
  • SIRO 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 SIRO:

Sirona Dental Systems, Inc. develops, manufactures, and markets dental equipment for dentists worldwide. It operates through four segments Dental CAD/CAM Systems, Imaging Systems, Treatment Centers, and Instruments. SIRO has a PE ratio of 27. Currently there are 5 analysts that rate Sirona Dental Systems a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Sirona Dental Systems has been 337,700 shares per day over the past 30 days. Sirona Dental Systems has a market cap of $5.5 billion and is part of the health care sector and health services industry. The stock has a beta of 0.76 and a short float of 4.8% with 7.37 days to cover. Shares are up 12.9% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Sirona Dental Systems 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, reasonable valuation levels, expanding profit margins and good cash flow from operations. We feel its 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, SIRO's share price has jumped by 31.33%, 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, SIRO should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • SIRO's debt-to-equity ratio is very low at 0.07 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, SIRO has a quick ratio of 2.13, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for SIRONA DENTAL SYSTEMS INC is rather high; currently it is at 62.57%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 13.99% is above that of the industry average.
  • Net operating cash flow has slightly increased to $69.20 million or 2.34% when compared to the same quarter last year. In addition, SIRONA DENTAL SYSTEMS INC has also vastly surpassed the industry average cash flow growth rate of -74.03%.

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