Web.com Group (WWWW) Is Today's Strong And Under The Radar Stock

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

  • WWWW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.8 million.
  • WWWW has traded 98.5373000000000018872015061788260936737060546875 options contracts today.
  • WWWW is making at least a new 3-day high.
  • WWWW has a PE ratio of 302.
  • WWWW is mentioned 0.94 times per day on StockTwits.
  • WWWW has not yet been mentioned on StockTwits today.
  • WWWW is currently in the upper 20% of its 1-year range.
  • WWWW is in the upper 35% of its 20-day range.
  • WWWW is in the upper 45% of its 5-day range.
  • WWWW 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 WWWW:

Web.com Group, Inc. provides Internet services to small businesses in North America, South America, and the United Kingdom. The company offers a range of Web services and products that enable small businesses to establish, maintain, promote, and optimize their online presence. WWWW has a PE ratio of 302. Currently there are 8 analysts that rate Web.com Group a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Web.com Group has been 395,100 shares per day over the past 30 days. Web.com Group has a market cap of $1.2 billion and is part of the technology sector and internet industry. The stock has a beta of 0.57 and a short float of 8.1% with 6.36 days to cover. Shares are up 28.6% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Web.com Group as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

Highlights from the ratings report include:
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • WEB.COM GROUP INC 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. This trend suggests that the performance of the business is improving. During the past fiscal year, WEB.COM GROUP INC continued to lose money by earning -$0.25 versus -$1.36 in the prior year. This year, the market expects an improvement in earnings ($2.40 versus -$0.25).
  • The gross profit margin for WEB.COM GROUP INC is rather high; currently it is at 65.29%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, WWWW's net profit margin of 3.35% significantly trails the industry average.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Internet Software & Services industry and the overall market, WEB.COM GROUP INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The debt-to-equity ratio is very high at 2.85 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.11, which clearly demonstrates the inability to cover short-term cash needs.

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