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

  • TYC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $152.7 million.
  • TYC has traded 904.5819999999999936335370875895023345947265625 options contracts today.
  • TYC is making at least a new 3-day high.
  • TYC has a PE ratio of 38.
  • TYC is mentioned 1.90 times per day on StockTwits.
  • TYC has not yet been mentioned on StockTwits today.
  • TYC is currently in the upper 20% of its 1-year range.
  • TYC is in the upper 35% of its 20-day range.
  • TYC is in the upper 45% of its 5-day range.
  • TYC 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 TYC:

Tyco International plc provides security products and services, fire detection and suppression products and services, and life safety products worldwide. The stock currently has a dividend yield of 1.9%. TYC has a PE ratio of 38. Currently there are 5 analysts that rate Tyco International a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Tyco International has been 3.2 million shares per day over the past 30 days. Tyco International has a market cap of $18.2 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.89 and a short float of 2.5% with 2.42 days to cover. Shares are up 35.1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Tyco International as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins, largely solid financial position with reasonable debt levels by most measures 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:
  • 40.37% is the gross profit margin for TYCO INTERNATIONAL PLC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 6.26% trails the industry average.
  • The debt-to-equity ratio is somewhat low, currently at 0.62, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Despite the fact that TYC's debt-to-equity ratio is low, the quick ratio, which is currently 0.67, displays a potential problem in covering short-term cash needs.
  • TYCO INTERNATIONAL PLC's earnings per share declined by 23.3% 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, TYCO INTERNATIONAL PLC reported lower earnings of $1.44 versus $1.69 in the prior year. This year, the market expects an improvement in earnings ($2.06 versus $1.44).
  • TYC, with its decline in revenue, underperformed when compared the industry average of 6.4%. Since the same quarter one year prior, revenues slightly dropped by 4.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • 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, despite the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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