Tucows (TCX) Highlighted As Strong And Under The Radar Stock Of The Day

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

  • TCX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.9 million.
  • TCX is making at least a new 3-day high.
  • TCX has a PE ratio of 36.
  • TCX is mentioned 1.74 times per day on StockTwits.
  • TCX has not yet been mentioned on StockTwits today.
  • TCX is currently in the upper 20% of its 1-year range.
  • TCX is in the upper 35% of its 20-day range.
  • TCX is in the upper 45% of its 5-day range.
  • TCX 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 TCX:

Tucows Inc. distributes Internet services primarily in North America and Europe. It operates through two segments, Domain Services and Network Access Services. TCX has a PE ratio of 36. Currently there is 1 analyst that rates Tucows a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Tucows has been 74,000 shares per day over the past 30 days. Tucows has a market cap of $292.7 million and is part of the technology sector and internet industry. The stock has a beta of 0.93 and a short float of 0.2% with 0.70 days to cover. Shares are up 39.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Tucows as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. 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 5.7%. Since the same quarter one year prior, revenues rose by 17.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 500.00% and other important driving factors, this stock has surged by 108.33% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • TUCOWS 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, TUCOWS INC increased its bottom line by earning $0.54 versus $0.36 in the prior year. This year, the market expects an improvement in earnings ($1.01 versus $0.54).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 494.1% when compared to the same quarter one year prior, rising from $0.48 million to $2.83 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 Internet Software & Services industry and the overall market, TUCOWS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.

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