NIC (EGOV) Highlighted As Strong And Under The Radar Stock Of The Day

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

  • EGOV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.4 million.
  • EGOV has traded 15.1194000000000006167510946397669613361358642578125 options contracts today.
  • EGOV is making at least a new 3-day high.
  • EGOV has a PE ratio of 3.
  • EGOV is mentioned 1.32 times per day on StockTwits.
  • EGOV has not yet been mentioned on StockTwits today.
  • EGOV is currently in the upper 20% of its 1-year range.
  • EGOV is in the upper 35% of its 20-day range.
  • EGOV is in the upper 45% of its 5-day range.
  • EGOV 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 EGOV:

NIC Inc., together with its subsidiaries, provides digital government services that enable governments to use technology to provide various services to businesses and citizens in the United States. EGOV has a PE ratio of 3. Currently there is 1 analyst that rates NIC a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for NIC has been 241,500 shares per day over the past 30 days. NIC has a market cap of $1.4 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.46 and a short float of 3.3% with 7.00 days to cover. Shares are up 5.9% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates NIC as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

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. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • NIC INC has improved earnings per share by 35.7% 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, NIC INC increased its bottom line by earning $0.63 versus $0.59 in the prior year. This year, the market expects an improvement in earnings ($0.69 versus $0.63).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Internet Software & Services industry average. The net income increased by 44.2% when compared to the same quarter one year prior, rising from $8.94 million to $12.89 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 20.7%. Since the same quarter one year prior, revenues rose by 11.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • EGOV has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, EGOV has a quick ratio of 2.37, which demonstrates the ability of the company to cover short-term liquidity needs.

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