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

  • ADVS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.2 million.
  • ADVS is making at least a new 3-day high.
  • ADVS has a PE ratio of 52.
  • ADVS is mentioned 1.23 times per day on StockTwits.
  • ADVS has not yet been mentioned on StockTwits today.
  • ADVS is currently in the upper 20% of its 1-year range.
  • ADVS is in the upper 35% of its 20-day range.
  • ADVS is in the upper 45% of its 5-day range.
  • ADVS 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 ADVS:

Advent Software, Inc. provides software products and services worldwide. The company offers its products and services for automating and integrating data and work flows across the investment management organization, as well as between the investment management organization and external parties. The stock currently has a dividend yield of 1.2%. ADVS has a PE ratio of 52. Currently there are no analysts that rate Advent Software a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Advent Software has been 683,000 shares per day over the past 30 days. Advent Software has a market cap of $2.3 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.68 and a short float of 4.5% with 4.03 days to cover. Shares are up 42.1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Advent Software as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 5.0%. Since the same quarter one year prior, revenues slightly increased by 6.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Compared to its closing price of one year ago, ADVS's share price has jumped by 40.92%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • ADVENT SOFTWARE INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, ADVENT SOFTWARE INC increased its bottom line by earning $0.93 versus $0.53 in the prior year. This year, the market expects an improvement in earnings ($1.54 versus $0.93).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Software industry. The net income has significantly decreased by 53.6% when compared to the same quarter one year ago, falling from $10.89 million to $5.05 million.
  • Net operating cash flow has significantly decreased to $6.46 million or 68.79% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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