Today's Strong And Under The Radar Stock Is Magellan Health (MGLN)

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

  • MGLN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.3 million.
  • MGLN has traded 9.1194000000000006167510946397669613361358642578125 options contracts today.
  • MGLN is making at least a new 3-day high.
  • MGLN has a PE ratio of 72.
  • MGLN is mentioned 0.84 times per day on StockTwits.
  • MGLN has not yet been mentioned on StockTwits today.
  • MGLN is currently in the upper 20% of its 1-year range.
  • MGLN is in the upper 35% of its 20-day range.
  • MGLN is in the upper 45% of its 5-day range.
  • MGLN 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 MGLN:

Magellan Health, Inc. engages in the healthcare management business in the United States. MGLN has a PE ratio of 72. Currently there is 1 analyst that rates Magellan Health a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Magellan Health has been 199,800 shares per day over the past 30 days. Magellan Health has a market cap of $1.7 billion and is part of the health care sector and health services industry. The stock has a beta of 0.31 and a short float of 1.5% with 1.84 days to cover. Shares are up 11.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Magellan Health as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income and growth in earnings per share. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • MGLN's revenue growth has slightly outpaced the industry average of 8.5%. Since the same quarter one year prior, revenues rose by 13.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • MGLN's debt-to-equity ratio is very low at 0.23 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.39, which illustrates the ability to avoid short-term cash problems.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Providers & Services industry. The net income increased by 81.6% when compared to the same quarter one year prior, rising from $7.29 million to $13.24 million.
  • MAGELLAN HEALTH INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MAGELLAN HEALTH INC reported lower earnings of $1.26 versus $2.92 in the prior year. This year, the market expects an improvement in earnings ($2.69 versus $1.26).
  • After a year of stock price fluctuations, the net result is that MGLN's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Despite the decline in its share price over the last year, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry. We feel, however, that other strengths this company displays compensate for this.

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