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

  • MYCC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.4 million.
  • MYCC is making at least a new 3-day high.
  • MYCC has a PE ratio of 116.
  • MYCC is mentioned 1.58 times per day on StockTwits.
  • MYCC has not yet been mentioned on StockTwits today.
  • MYCC is currently in the upper 20% of its 1-year range.
  • MYCC is in the upper 35% of its 20-day range.
  • MYCC is in the upper 45% of its 5-day range.
  • MYCC 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 MYCC:

ClubCorp Holdings, Inc., a membership-based leisure company, owns and operates golf, country, business, sports, and alumni clubs in North America. It operates in two segments, Golf and Country Clubs; and Business, Sports, and Alumni Clubs. The stock currently has a dividend yield of 2.2%. MYCC has a PE ratio of 116. Currently there are 7 analysts that rate ClubCorp Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for ClubCorp Holdings has been 480,800 shares per day over the past 30 days. ClubCorp has a market cap of $1.5 billion and is part of the services sector and leisure industry. Shares are up 30.5% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates ClubCorp Holdings as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and poor profit margins.

Highlights from the ratings report include:
  • The debt-to-equity ratio is very high at 5.00 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.41, which clearly demonstrates the inability to cover short-term cash needs.
  • The gross profit margin for CLUBCORP HOLDINGS INC is rather low; currently it is at 23.96%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -2.08% is significantly below that of the industry average.
  • Compared to its closing price of one year ago, MYCC's share price has jumped by 25.20%, exceeding the performance of the broader market during that same time frame. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry average. The net income has decreased by 13.3% when compared to the same quarter one year ago, dropping from -$3.73 million to -$4.22 million.
  • CLUBCORP HOLDINGS INC's earnings per share declined by 16.7% 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, CLUBCORP HOLDINGS INC turned its bottom line around by earning $0.20 versus -$0.59 in the prior year. This year, the market expects an improvement in earnings ($0.48 versus $0.20).

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