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

  • BLKB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.5 million.
  • BLKB has traded 16.970099999999998630073605454526841640472412109375 options contracts today.
  • BLKB is making at least a new 3-day high.
  • BLKB has a PE ratio of 126.
  • BLKB is mentioned 0.77 times per day on StockTwits.
  • BLKB has not yet been mentioned on StockTwits today.
  • BLKB is currently in the upper 20% of its 1-year range.
  • BLKB is in the upper 35% of its 20-day range.
  • BLKB is in the upper 45% of its 5-day range.
  • BLKB 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 BLKB:

Blackbaud, Inc. provides software solutions and related services for nonprofit, charitable giving, and education communities worldwide. The stock currently has a dividend yield of 0.7%. BLKB has a PE ratio of 126. Currently there are 5 analysts that rate Blackbaud a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Blackbaud has been 191,500 shares per day over the past 30 days. Blackbaud has a market cap of $3.1 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.62 and a short float of 5.2% with 8.74 days to cover. Shares are up 52.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Blackbaud as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 16.7%. Since the same quarter one year prior, revenues slightly increased by 9.8%. 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.
  • The gross profit margin for BLACKBAUD INC is rather high; currently it is at 61.82%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, BLKB's net profit margin of 4.98% significantly trails the industry average.
  • Compared to its closing price of one year ago, BLKB's share price has jumped by 52.98%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • BLACKBAUD INC's earnings per share declined by 26.1% 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, BLACKBAUD INC reported lower earnings of $0.61 versus $0.68 in the prior year. This year, the market expects an improvement in earnings ($1.50 versus $0.61).
  • Net operating cash flow has declined marginally to $37.73 million or 6.58% when compared to the same quarter last year. Despite a decrease in cash flow of 6.58%, BLACKBAUD INC is in line with the industry average cash flow growth rate of -8.51%.

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