Trade-Ideas: Mesa Laboratories (MLAB) Is Today's Strong And Under The Radar Stock

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

  • MLAB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.0 million.
  • MLAB is making at least a new 3-day high.
  • MLAB has a PE ratio of 48.
  • MLAB is mentioned 0.77 times per day on StockTwits.
  • MLAB has not yet been mentioned on StockTwits today.
  • MLAB is currently in the upper 20% of its 1-year range.
  • MLAB is in the upper 35% of its 20-day range.
  • MLAB is in the upper 45% of its 5-day range.
  • MLAB 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 MLAB:

Mesa Laboratories, Inc. designs, manufactures, and markets quality control instruments and disposable products. It operates through three segments: Instruments, Biological Indicators, and Continuous Monitoring. The stock currently has a dividend yield of 0.6%. MLAB has a PE ratio of 48. Currently there is 1 analyst that rates Mesa Laboratories a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Mesa Laboratories has been 42,000 shares per day over the past 30 days. Mesa has a market cap of $415.1 million and is part of the health care sector and health services industry. The stock has a beta of 0.71 and a short float of 9% with 7.22 days to cover. Shares are up 20.6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Mesa Laboratories as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, growth in earnings per share, compelling growth in net income and expanding profit margins. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 1.6%. Since the same quarter one year prior, revenues rose by 33.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 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 Electronic Equipment, Instruments & Components industry and the overall market, MESA LABORATORIES INC's return on equity exceeds that of both the industry average and the S&P 500.
  • MESA LABORATORIES 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. During the past fiscal year, MESA LABORATORIES INC increased its bottom line by earning $2.98 versus $2.62 in the prior year. This year, the market expects an improvement in earnings ($4.20 versus $2.98).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 78.2% when compared to the same quarter one year prior, rising from $2.24 million to $3.99 million.
  • The gross profit margin for MESA LABORATORIES INC is rather high; currently it is at 60.44%. Regardless of MLAB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MLAB's net profit margin of 16.08% significantly outperformed against the industry.

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