Today's Strong And Under The Radar Stock Is Orbitz Worldwide (OWW)

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

  • OWW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.3 million.
  • OWW is making at least a new 3-day high.
  • OWW has a PE ratio of 1141.
  • OWW is mentioned 1.97 times per day on StockTwits.
  • OWW has not yet been mentioned on StockTwits today.
  • OWW is currently in the upper 20% of its 1-year range.
  • OWW is in the upper 35% of its 20-day range.
  • OWW is in the upper 45% of its 5-day range.
  • OWW 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 OWW:

Orbitz Worldwide, Inc. operates as an online travel company worldwide. OWW has a PE ratio of 1141. Currently there are no analysts that rate Orbitz Worldwide a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Orbitz Worldwide has been 2.1 million shares per day over the past 30 days. Orbitz Worldwide has a market cap of $1.3 billion and is part of the services sector and leisure industry. The stock has a beta of 1.04 and a short float of 13.9% with 5.71 days to cover. Shares are up 38.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Orbitz Worldwide as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and generally higher debt management risk.

Highlights from the ratings report include:
  • OWW's revenue growth trails the industry average of 18.8%. Since the same quarter one year prior, revenues slightly increased by 4.7%. 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.
  • Net operating cash flow has slightly increased to $165.19 million or 5.57% when compared to the same quarter last year. Despite an increase in cash flow, ORBITZ WORLDWIDE INC's cash flow growth rate is still lower than the industry average growth rate of 40.67%.
  • The gross profit margin for ORBITZ WORLDWIDE INC is rather high; currently it is at 67.08%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, OWW's net profit margin of -9.50% significantly underperformed when compared to the industry average.
  • The debt-to-equity ratio is very high at 7.52 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, OWW has a quick ratio of 0.61, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Internet & Catalog Retail industry and the overall market on the basis of return on equity, ORBITZ WORLDWIDE INC underperformed against that of the industry average and is significantly less than that of the S&P 500.

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