Don't Miss Today's Strong And Under The Radar Stock: NN (NNBR)

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

  • NNBR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.3 million.
  • NNBR is making at least a new 3-day high.
  • NNBR has a PE ratio of 6.
  • NNBR is mentioned 0.90 times per day on StockTwits.
  • NNBR has not yet been mentioned on StockTwits today.
  • NNBR is currently in the upper 20% of its 1-year range.
  • NNBR is in the upper 35% of its 20-day range.
  • NNBR is in the upper 45% of its 5-day range.
  • NNBR 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 NNBR with the Ticky from Trade-Ideas. See the FREE profile for NNBR NOW at Trade-Ideas

More details on NNBR:

NN, Inc. manufactures and sells metal bearing, plastic and rubber, and precision metal components for bearing, automotive, and industrial parts manufacturers worldwide. The stock currently has a dividend yield of 1%. NNBR has a PE ratio of 6. Currently there are 2 analysts that rate NN a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for NN has been 151,400 shares per day over the past 30 days. NN has a market cap of $548.5 million and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.05 and a short float of 11.7% with 18.09 days to cover. Shares are up 39.4% year-to-date as of the close of trading on Friday.

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 NN as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, solid stock price performance and growth in earnings per share. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • NNBR's very impressive revenue growth greatly exceeded the industry average of 11.3%. Since the same quarter one year prior, revenues leaped by 59.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Machinery industry average. The net income increased by 14.6% when compared to the same quarter one year prior, going from $5.24 million to $6.00 million.
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • NN INC has improved earnings per share by 6.9% 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, NN INC reported lower earnings of $0.45 versus $0.99 in the prior year. This year, the market expects an improvement in earnings ($1.73 versus $0.45).
  • The debt-to-equity ratio is very high at 2.33 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, NNBR's quick ratio is somewhat strong at 1.05, demonstrating the ability to handle short-term liquidity needs.

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

Global Stocks Mixed, Dollar Firm as Trade Tensions Keep Investors Cautious

Global Stocks Mixed, Dollar Firm as Trade Tensions Keep Investors Cautious

FTC Chair Says Agency Is Ready to Take on Big Tech; Walgreens Joins Dow -- ICYMI

FTC Chair Says Agency Is Ready to Take on Big Tech; Walgreens Joins Dow -- ICYMI

Dow Gets Swept Into Nasty Reversal Even as Nasdaq Posts New Record

Dow Gets Swept Into Nasty Reversal Even as Nasdaq Posts New Record

Zoom CEO Eric Yuan Leads Glassdoor's List of Top 100 CEOs

Zoom CEO Eric Yuan Leads Glassdoor's List of Top 100 CEOs

REPLAY: Jim Cramer on Fed Rate Hikes, Oil Prices and Starbucks Worries

REPLAY: Jim Cramer on Fed Rate Hikes, Oil Prices and Starbucks Worries