Strong And Under The Radar: Informatica (INFA)

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

  • INFA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $39.3 million.
  • INFA is making at least a new 3-day high.
  • INFA has a PE ratio of 48.
  • INFA is mentioned 0.45 times per day on StockTwits.
  • INFA has not yet been mentioned on StockTwits today.
  • INFA is currently in the upper 20% of its 1-year range.
  • INFA is in the upper 35% of its 20-day range.
  • INFA is in the upper 45% of its 5-day range.
  • INFA 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 INFA:

Informatica Corporation provides enterprise data integration software and services worldwide. INFA has a PE ratio of 48. Currently there are 4 analysts that rate Informatica a buy, 1 analyst rates it a sell, and 12 rate it a hold.

The average volume for Informatica has been 2.0 million shares per day over the past 30 days. Informatica has a market cap of $5.1 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.47 and a short float of 1.8% with 1.91 days to cover. Shares are up 27.5% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Informatica 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, solid stock price performance, good cash flow from operations and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 7.2%. 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.
  • INFA has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.48, which illustrates the ability to avoid short-term cash problems.
  • Compared to its closing price of one year ago, INFA's share price has jumped by 31.92%, 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, INFA should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Net operating cash flow has slightly increased to $66.24 million or 5.57% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -16.29%.
  • The gross profit margin for INFORMATICA CORP is currently very high, coming in at 84.37%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, INFA's net profit margin of 8.60% significantly trails the industry average.

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