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

  • CATM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.8 million.
  • CATM is making at least a new 3-day high.
  • CATM has a PE ratio of 4.
  • CATM is mentioned 0.97 times per day on StockTwits.
  • CATM has not yet been mentioned on StockTwits today.
  • CATM is currently in the upper 20% of its 1-year range.
  • CATM is in the upper 35% of its 20-day range.
  • CATM is in the upper 45% of its 5-day range.
  • CATM 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 CATM:

Cardtronics, Inc. provides automated consumer financial services through its network of automated teller machines (ATMs) and multi-function financial services kiosks. It operates through U.S., Europe, and Other International segments. CATM has a PE ratio of 4. Currently there are 8 analysts that rate Cardtronics a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Cardtronics has been 309,000 shares per day over the past 30 days. Cardtronics has a market cap of $1.7 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.09 and a short float of 19.8% with 34.32 days to cover. Shares are down 2% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Cardtronics as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, reasonable valuation levels and good cash flow from operations. 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:
  • The revenue growth greatly exceeded the industry average of 22.5%. Since the same quarter one year prior, revenues rose by 15.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • CARDTRONICS 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 year. We feel that this trend should continue. During the past fiscal year, CARDTRONICS INC increased its bottom line by earning $0.82 versus $0.51 in the prior year. This year, the market expects an improvement in earnings ($2.82 versus $0.82).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the IT Services industry. The net income increased by 59.3% when compared to the same quarter one year prior, rising from $9.57 million to $15.23 million.
  • Net operating cash flow has significantly increased by 112.63% to $30.87 million when compared to the same quarter last year. In addition, CARDTRONICS INC has also vastly surpassed the industry average cash flow growth rate of -11.72%.

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