Don't Miss Today's Strong And Under The Radar Stock: Electronics For Imaging (EFII)

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

  • EFII has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.6 million.
  • EFII is making at least a new 3-day high.
  • EFII has a PE ratio of 75.
  • EFII is mentioned 0.68 times per day on StockTwits.
  • EFII has not yet been mentioned on StockTwits today.
  • EFII is currently in the upper 20% of its 1-year range.
  • EFII is in the upper 35% of its 20-day range.
  • EFII is in the upper 45% of its 5-day range.
  • EFII 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 EFII:

Electronics For Imaging, Inc. provides digital inkjet printers, business process automation solutions, and color digital front ends (DFE) in the Untied States and internationally. EFII has a PE ratio of 75. Currently there is 1 analyst that rates Electronics for Imaging a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Electronics for Imaging has been 232,600 shares per day over the past 30 days. Electronics for Imaging has a market cap of $2.1 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.27 and a short float of 7.1% with 17.70 days to cover. Shares are up 5.2% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Electronics for Imaging as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and increase in stock price during the past year. 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 significantly trails the industry average of 33.3%. Since the same quarter one year prior, revenues slightly increased by 3.1%. 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.
  • Despite currently having a low debt-to-equity ratio of 0.38, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 3.91 is very high and demonstrates very strong liquidity.
  • Net operating cash flow has increased to $7.08 million or 20.33% when compared to the same quarter last year. Despite an increase in cash flow, ELECTRONICS FOR IMAGING INC's cash flow growth rate is still lower than the industry average growth rate of 48.86%.
  • The gross profit margin for ELECTRONICS FOR IMAGING INC is rather high; currently it is at 55.74%. Regardless of EFII's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, EFII's net profit margin of 2.69% is significantly lower than the industry average.
  • ELECTRONICS FOR IMAGING INC's earnings per share declined by 47.6% 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 two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, ELECTRONICS FOR IMAGING INC reported lower earnings of $0.70 versus $2.24 in the prior year. This year, the market expects an improvement in earnings ($2.03 versus $0.70).

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Trade-Ideas: Electronics For Imaging (EFII) Is Today's Strong And Under The Radar Stock

Trade-Ideas: Electronics For Imaging (EFII) Is Today's Strong And Under The Radar Stock