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

  • BCPC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.7 million.
  • BCPC has traded 5.3284000000000002472688720445148646831512451171875 options contracts today.
  • BCPC is making at least a new 3-day high.
  • BCPC has a PE ratio of 31.
  • BCPC is mentioned 0.48 times per day on StockTwits.
  • BCPC has not yet been mentioned on StockTwits today.
  • BCPC is currently in the upper 20% of its 1-year range.
  • BCPC is in the upper 35% of its 20-day range.
  • BCPC is in the upper 45% of its 5-day range.
  • BCPC 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 BCPC:

Balchem Corporation develops, manufactures, and markets specialty performance ingredients and products for the food, nutritional, feed, pharmaceutical, and medical sterilization industries in the United States and internationally. The stock currently has a dividend yield of 0.5%. BCPC has a PE ratio of 31. Currently there is 1 analyst that rates Balchem a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Balchem has been 145,200 shares per day over the past 30 days. Balchem has a market cap of $2.0 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.18 and a short float of 6.5% with 12.03 days to cover. Shares are down 3% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Balchem 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, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. 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 11.3%. Since the same quarter one year prior, revenues slightly increased by 1.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.72, 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, BCPC has a quick ratio of 1.83, which demonstrates the ability of the company to cover short-term liquidity needs.
  • BALCHEM CORP reported significant earnings per share improvement 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 two years. We feel that this trend should continue. During the past fiscal year, BALCHEM CORP increased its bottom line by earning $1.70 versus $1.47 in the prior year. This year, the market expects an improvement in earnings ($2.50 versus $1.70).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Chemicals industry. The net income increased by 53.3% when compared to the same quarter one year prior, rising from $9.73 million to $14.92 million.
  • Net operating cash flow has increased to $23.27 million or 34.00% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -3.55%.

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