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

  • EBSB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.4 million.
  • EBSB has traded 3.790999999999999925393012745189480483531951904296875 options contracts today.
  • EBSB is making at least a new 3-day high.
  • EBSB has a PE ratio of 31.
  • EBSB is mentioned 0.29 times per day on StockTwits.
  • EBSB has not yet been mentioned on StockTwits today.
  • EBSB is currently in the upper 20% of its 1-year range.
  • EBSB is in the upper 35% of its 20-day range.
  • EBSB is in the upper 45% of its 5-day range.
  • EBSB 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 EBSB:

Meridian Bancorp, Inc. operates as the holding company for East Boston Savings Bank that provides various financial products and services for individuals and businesses primarily in Suffolk, Middlesex, and Essex Counties, Massachusetts. The stock currently has a dividend yield of 0.8%. EBSB has a PE ratio of 31. Currently there are no analysts that rate Meridian Bancorp a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Meridian Bancorp has been 139,400 shares per day over the past 30 days. Meridian has a market cap of $820.2 million and is part of the financial sector and banking industry. The stock has a beta of 0.25 and a short float of 2.9% with 5.62 days to cover. Shares are up 9.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Meridian Bancorp as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 9.1%. Since the same quarter one year prior, revenues rose by 12.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • MERIDIAN BANCORP INC (MD) has improved earnings per share by 16.7% 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, MERIDIAN BANCORP INC (MD) increased its bottom line by earning $0.47 versus $0.41 in the prior year. This year, the market expects an improvement in earnings ($0.58 versus $0.47).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Thrifts & Mortgage Finance industry. The net income increased by 16.7% when compared to the same quarter one year prior, going from $6.41 million to $7.48 million.
  • Net operating cash flow has significantly increased by 380.34% to $10.02 million when compared to the same quarter last year. In addition, MERIDIAN BANCORP INC (MD) has also vastly surpassed the industry average cash flow growth rate of 131.03%.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.

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