Today's Strong And Under The Radar Stock: Providence Service (PRSC)

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

  • PRSC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.0 million.
  • PRSC has traded 1.5075000000000000621724893790087662637233734130859375 options contracts today.
  • PRSC is making at least a new 3-day high.
  • PRSC has a PE ratio of 5.
  • PRSC is mentioned 0.55 times per day on StockTwits.
  • PRSC has not yet been mentioned on StockTwits today.
  • PRSC is currently in the upper 20% of its 1-year range.
  • PRSC is in the upper 35% of its 20-day range.
  • PRSC is in the upper 45% of its 5-day range.
  • PRSC 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 PRSC:

The Providence Service Corporation provides and manages government sponsored non-emergency transportation services (NET Services), human services, workforce development services (WD Services), and health assessment services (HA Services) in the United States and Canada. PRSC has a PE ratio of 5. Currently there is 1 analyst that rates Providence Service a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Providence Service has been 88,400 shares per day over the past 30 days. Providence Service has a market cap of $812.4 million and is part of the health care sector and health services industry. The stock has a beta of 0.62 and a short float of 4% with 5.67 days to cover. Shares are up 38.9% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Providence Service as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth 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 9.8%. Since the same quarter one year prior, revenues rose by 47.8%. 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.
  • PROVIDENCE SERVICE CORP's earnings per share declined by 43.5% 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 year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, PROVIDENCE SERVICE CORP reported lower earnings of $1.37 versus $1.41 in the prior year. This year, the market expects an improvement in earnings ($1.95 versus $1.37).
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
  • The gross profit margin for PROVIDENCE SERVICE CORP is currently extremely low, coming in at 11.45%. Regardless of PRSC's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 1.30% trails the industry average.
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Health Care Providers & Services industry average. The net income has decreased by 0.6% when compared to the same quarter one year ago, dropping from $6.67 million to $6.63 million.

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