AVG Technologies (AVG) Showing Signs Of Being Strong And Under The Radar

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

  • AVG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.0 million.
  • AVG is making at least a new 3-day high.
  • AVG has a PE ratio of 14.
  • AVG is mentioned 1.90 times per day on StockTwits.
  • AVG has not yet been mentioned on StockTwits today.
  • AVG is currently in the upper 20% of its 1-year range.
  • AVG is in the upper 35% of its 20-day range.
  • AVG is in the upper 45% of its 5-day range.
  • AVG 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 AVG with the Ticky from Trade-Ideas. See the FREE profile for AVG NOW at Trade-Ideas

More details on AVG:

AVG Technologies N.V. develops and sells online service solutions and Internet security software under the AVG brand name. AVG has a PE ratio of 14. Currently there are 2 analysts that rate AVG Technologies a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for AVG Technologies has been 393,700 shares per day over the past 30 days. AVG has a market cap of $1.4 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.25 and a short float of 5.3% with 3.38 days to cover. Shares are up 40.8% year-to-date as of the close of trading on Wednesday.

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 AVG Technologies as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

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 9.9%. 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, AVG's share price has jumped by 32.91%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, AVG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The gross profit margin for AVG TECHNOLOGIES NV is currently very high, coming in at 97.02%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, AVG's net profit margin of 11.59% significantly trails the industry average.
  • AVG TECHNOLOGIES NV's earnings per share declined by 35.3% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, AVG TECHNOLOGIES NV reported lower earnings of $1.03 versus $1.16 in the prior year. This year, the market expects an improvement in earnings ($1.88 versus $1.03).
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Software industry and the overall market, AVG TECHNOLOGIES NV's return on equity significantly exceeds that of both the industry average and the S&P 500.

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

Lowe's Snags Ex-Home Depot Exec as CEO; ISPs Face Competitive Threat -- ICYMI

Lowe's Snags Ex-Home Depot Exec as CEO; ISPs Face Competitive Threat -- ICYMI

Dow Slips 178 Points; S&P 500 and Nasdaq Also Decline

Dow Slips 178 Points; S&P 500 and Nasdaq Also Decline

Legal Weed Sales in California Are Off to a Less Than Smokin' Start

Legal Weed Sales in California Are Off to a Less Than Smokin' Start

Owner of Moviepass Sees Stock Plummet

Owner of Moviepass Sees Stock Plummet

Ford, GM Gain as China Slashes Auto Import Tariffs

Ford, GM Gain as China Slashes Auto Import Tariffs