Today's Strong And Under The Radar Stock Is ExlService Holdings (EXLS)

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

  • EXLS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.9 million.
  • EXLS is making at least a new 3-day high.
  • EXLS has a PE ratio of 39.
  • EXLS is mentioned 0.87 times per day on StockTwits.
  • EXLS has not yet been mentioned on StockTwits today.
  • EXLS is currently in the upper 20% of its 1-year range.
  • EXLS is in the upper 35% of its 20-day range.
  • EXLS is in the upper 45% of its 5-day range.
  • EXLS 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 EXLS with the Ticky from Trade-Ideas. See the FREE profile for EXLS NOW at Trade-Ideas

More details on EXLS:

ExlService Holdings, Inc. provides business process solutions, utilizing operations management, analytics, and technology primarily in the United States and the United Kingdom. It operates in two segments, Operations Management, and Analytics and Business Transformation. EXLS has a PE ratio of 39. Currently there are 5 analysts that rate ExlService Holdings a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for ExlService Holdings has been 148,000 shares per day over the past 30 days. ExlService has a market cap of $1.2 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.42 and a short float of 1.9% with 4.30 days to cover. Shares are up 24.6% 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 ExlService Holdings 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, reasonable valuation levels, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 22.5%. Since the same quarter one year prior, revenues rose by 15.5%. 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.
  • EXLS's debt-to-equity ratio is very low at 0.19 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.04, which clearly demonstrates the ability to cover short-term cash needs.
  • 35.11% is the gross profit margin for EXLSERVICE HOLDINGS INC which we consider to be strong. Regardless of EXLS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 6.66% trails the industry average.
  • EXLSERVICE HOLDINGS INC's earnings per share declined by 15.2% 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, EXLSERVICE HOLDINGS INC reported lower earnings of $0.96 versus $1.42 in the prior year. This year, the market expects an improvement in earnings ($1.91 versus $0.96).

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

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

U.S. Crude Oil Hits Fresh 3-Year Highs as Gasoline Heads to $3 a Gallon

U.S. Crude Oil Hits Fresh 3-Year Highs as Gasoline Heads to $3 a Gallon