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

  • GLOB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.7 million.
  • GLOB has traded 75.0896000000000043428372009657323360443115234375 options contracts today.
  • GLOB is making at least a new 3-day high.
  • GLOB has a PE ratio of 43.
  • GLOB is mentioned 1.06 times per day on StockTwits.
  • GLOB has not yet been mentioned on StockTwits today.
  • GLOB is currently in the upper 20% of its 1-year range.
  • GLOB is in the upper 35% of its 20-day range.
  • GLOB is in the upper 45% of its 5-day range.
  • GLOB 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 GLOB:

Globant S.A. develops software solutions in the United States, Europe, and Latin America. GLOB has a PE ratio of 43. Currently there are 4 analysts that rate Globant a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Globant has been 252,400 shares per day over the past 30 days. Globant has a market cap of $1.4 billion and is part of the technology sector and computer software & services industry. Shares are up 8.2% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Globant as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, growth in earnings per share and expanding profit margins. 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 greatly exceeded the industry average of 0.7%. Since the same quarter one year prior, revenues rose by 34.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • GLOB's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.72, which clearly demonstrates the ability to cover short-term cash needs.
  • 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. 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.
  • GLOBANT SA's earnings per share improvement from the most recent quarter was slightly positive. 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, GLOBANT SA increased its bottom line by earning $0.91 versus $0.75 in the prior year. This year, the market expects an improvement in earnings ($1.16 versus $0.91).
  • 44.84% is the gross profit margin for GLOBANT SA 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 10.82% trails the industry average.

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