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

  • CEB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.3 million.
  • CEB is making at least a new 3-day high.
  • CEB has a PE ratio of 46.
  • CEB is mentioned 1.29 times per day on StockTwits.
  • CEB has not yet been mentioned on StockTwits today.
  • CEB is currently in the upper 20% of its 1-year range.
  • CEB is in the upper 35% of its 20-day range.
  • CEB is in the upper 45% of its 5-day range.
  • CEB 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 CEB:

CEB Inc. provides member-based advisory services to executives and professionals in the United States, Europe, and internationally. The stock currently has a dividend yield of 1.8%. CEB has a PE ratio of 46. Currently there are 5 analysts that rate CEB a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for CEB has been 188,100 shares per day over the past 30 days. CEB has a market cap of $2.9 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.94 and a short float of 1.9% with 3.40 days to cover. Shares are up 17.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates CEB as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, impressive record of earnings per share growth and compelling growth in net income. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • CEB's revenue growth has slightly outpaced the industry average of 1.1%. Since the same quarter one year prior, revenues slightly increased by 5.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • CEB INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CEB INC increased its bottom line by earning $1.50 versus $0.94 in the prior year. This year, the market expects an improvement in earnings ($3.68 versus $1.50).
  • 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 149.3% when compared to the same quarter one year prior, rising from $7.66 million to $19.09 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Professional Services industry and the overall market, CEB INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for CEB INC is rather high; currently it is at 64.57%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 8.59% is above that of the industry average.

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