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

  • STE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $33.1 million.
  • STE has traded 89.83580000000000609361450187861919403076171875 options contracts today.
  • STE is making at least a new 3-day high.
  • STE has a PE ratio of 31.
  • STE is mentioned 1.26 times per day on StockTwits.
  • STE has not yet been mentioned on StockTwits today.
  • STE is currently in the upper 20% of its 1-year range.
  • STE is in the upper 35% of its 20-day range.
  • STE is in the upper 45% of its 5-day range.
  • STE 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 STE:

STERIS Corporation develops, manufactures, and markets infection prevention, contamination control, microbial reduction, and procedural support products and services for healthcare, pharmaceutical, scientific, research, industrial, and governmental customers worldwide. The stock currently has a dividend yield of 1.4%. STE has a PE ratio of 31. Currently there are 2 analysts that rate Steris a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Steris has been 678,500 shares per day over the past 30 days. Steris has a market cap of $4.1 billion and is part of the health care sector and health services industry. The stock has a beta of 1.26 and a short float of 12.6% with 13.74 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 Steris as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. 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:
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 28.76% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, STE should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • STERIS CORP has improved earnings per share by 6.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, STERIS CORP increased its bottom line by earning $2.25 versus $2.17 in the prior year. This year, the market expects an improvement in earnings ($3.25 versus $2.25).
  • STE's revenue growth trails the industry average of 25.9%. Since the same quarter one year prior, revenues slightly increased by 7.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.58, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, STE has a quick ratio of 1.74, which demonstrates the ability of the company to cover short-term liquidity needs.

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