Bright Horizons Family Solutions (BFAM) Showing Signs Of Being Strong And Under The Radar

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

  • BFAM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.2 million.
  • BFAM has traded 11.05969999999999942019712761975824832916259765625 options contracts today.
  • BFAM is making at least a new 3-day high.
  • BFAM has a PE ratio of 45.
  • BFAM is mentioned 0.97 times per day on StockTwits.
  • BFAM has not yet been mentioned on StockTwits today.
  • BFAM is currently in the upper 20% of its 1-year range.
  • BFAM is in the upper 35% of its 20-day range.
  • BFAM is in the upper 45% of its 5-day range.
  • BFAM 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in BFAM with the Ticky from Trade-Ideas. See the FREE profile for BFAM NOW at Trade-Ideas

More details on BFAM:

Bright Horizons Family Solutions Inc. provides child care, early education, and other services for employers and families. It operates through three segments: Full-Service Center-Based Child Care, Back-Up Dependent Care, and Other Educational Advisory Services. BFAM has a PE ratio of 45. Currently there are 4 analysts that rate Bright Horizons Family Solutions a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Bright Horizons Family Solutions has been 174,300 shares per day over the past 30 days. Bright Horizons Family has a market cap of $3.8 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.43 and a short float of 3% with 4.40 days to cover. Shares are up 35.7% year-to-date as of the close of trading on Tuesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Bright Horizons Family Solutions as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • BFAM's revenue growth has slightly outpaced the industry average of 0.5%. Since the same quarter one year prior, revenues slightly increased by 9.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • BRIGHT HORIZONS FAMILY SOLTN has improved earnings per share by 43.5% 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, BRIGHT HORIZONS FAMILY SOLTN increased its bottom line by earning $1.07 versus $0.15 in the prior year. This year, the market expects an improvement in earnings ($1.83 versus $1.07).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Diversified Consumer Services industry. The net income increased by 33.7% when compared to the same quarter one year prior, rising from $15.38 million to $20.56 million.
  • Net operating cash flow has significantly increased by 60.80% to $27.24 million when compared to the same quarter last year. In addition, BRIGHT HORIZONS FAMILY SOLTN has also vastly surpassed the industry average cash flow growth rate of -452.50%.
  • 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 Diversified Consumer Services industry and the overall market on the basis of return on equity, BRIGHT HORIZONS FAMILY SOLTN has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

Join Jim Cramer's Club During Our '12 Days of Holiday Deals' Sale and Save 66%!

Join Jim Cramer's Club During Our '12 Days of Holiday Deals' Sale and Save 66%!

Your Worst Enemy In a Bear Market Is Yourself

Your Worst Enemy In a Bear Market Is Yourself

Economist Perspective: Brexit Endgame in Sight?

Economist Perspective: Brexit Endgame in Sight?

Flashback Friday: Johnson & Johnson Hits Take Historic Plunge

Flashback Friday: Johnson & Johnson Hits Take Historic Plunge

Dow, S&P, Nasdaq Are All in Correction Territory Following Stock Selloff

Dow, S&P, Nasdaq Are All in Correction Territory Following Stock Selloff