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

  • WOOF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.6 million.
  • WOOF is making at least a new 3-day high.
  • WOOF has a PE ratio of 33.
  • WOOF is mentioned 0.71 times per day on StockTwits.
  • WOOF has not yet been mentioned on StockTwits today.
  • WOOF is currently in the upper 20% of its 1-year range.
  • WOOF is in the upper 35% of its 20-day range.
  • WOOF is in the upper 45% of its 5-day range.
  • WOOF 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 WOOF with the Ticky from Trade-Ideas. See the FREE profile for WOOF NOW at Trade-Ideas

More details on WOOF:

VCA Inc. operates as an animal healthcare company in the United States and Canada. It operates through two segments, Animal Hospital and Laboratory. WOOF has a PE ratio of 33. Currently there are 5 analysts that rate VCA a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for VCA has been 404,000 shares per day over the past 30 days. VCA has a market cap of $4.4 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.53 and a short float of 0.5% with 0.83 days to cover. Shares are up 11.5% 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 VCA as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, good cash flow from operations, growth in earnings per share and solid stock price performance. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • 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 Health Care Providers & Services industry average. The net income increased by 12.5% when compared to the same quarter one year prior, going from $34.04 million to $38.30 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 13.0%. Since the same quarter one year prior, revenues rose by 11.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Net operating cash flow has increased to $80.63 million or 17.99% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 1.49%.
  • VCA INC has improved earnings per share by 21.1% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, VCA INC's EPS of $1.53 remained unchanged from the prior years' EPS of $1.53. This year, the market expects an improvement in earnings ($2.25 versus $1.53).
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 52.78% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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

Comcast Considering All-Cash Bid for Fox as Disney Battle Heads to the Wire

Comcast Considering All-Cash Bid for Fox as Disney Battle Heads to the Wire

Global Rally Stalls as Trump Doubts North Korea Summit, Questions China Trade

Global Rally Stalls as Trump Doubts North Korea Summit, Questions China Trade

Target's Stock Tanks After Q1 Earnings Miss and Slowing Sales

Target's Stock Tanks After Q1 Earnings Miss and Slowing Sales

Trump, China Trade, Target and Las Vegas Casinos - 5 Things You Must Know

Trump, China Trade, Target and Las Vegas Casinos - 5 Things You Must Know

Stocks Move Lower on Trade Fears and 4 Other Stories You Must Know Wednesday

Stocks Move Lower on Trade Fears and 4 Other Stories You Must Know Wednesday