Strong And Under The Radar: Entegris (ENTG)

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

  • ENTG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.3 million.
  • ENTG is making at least a new 3-day high.
  • ENTG has a PE ratio of 21.
  • ENTG is mentioned 1.19 times per day on StockTwits.
  • ENTG has not yet been mentioned on StockTwits today.
  • ENTG is currently in the upper 20% of its 1-year range.
  • ENTG is in the upper 35% of its 20-day range.
  • ENTG is in the upper 45% of its 5-day range.
  • ENTG 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 ENTG:

Entegris, Inc. manufactures and sells a range of products and services for purifying, protecting, and transporting the critical materials used in processing and manufacturing in the microelectronics and other high-technology industries worldwide. ENTG has a PE ratio of 21. Currently there are 2 analysts that rate Entegris a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Entegris has been 639,600 shares per day over the past 30 days. Entegris has a market cap of $2.1 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.67 and a short float of 8.2% with 16.13 days to cover. Shares are up 11.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Entegris as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, solid stock price performance and growth in earnings per share. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • ENTG's very impressive revenue growth greatly exceeded the industry average of 0.7%. Since the same quarter one year prior, revenues leaped by 58.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.98, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, ENTG has a quick ratio of 2.32, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 49.30% is the gross profit margin for ENTEGRIS INC which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, ENTG's net profit margin of 5.64% significantly trails the industry average.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • ENTEGRIS INC has improved earnings per share by 10.0% in the most recent quarter compared to 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, ENTEGRIS INC reported lower earnings of $0.05 versus $0.54 in the prior year. This year, the market expects an improvement in earnings ($0.80 versus $0.05).

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