NIC (EGOV) Showing Signs Of Being Strong And Under The Radar

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 $5.2 million.
  • EGOV has traded 7.7760999999999995679900166578590869903564453125 options contracts today.
  • EGOV is making at least a new 3-day high.
  • EGOV has a PE ratio of 34.
  • EGOV is mentioned 0.65 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in EGOV with the Ticky from Trade-Ideas. See the FREE profile for EGOV NOW at Trade-Ideas

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 34. 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 285,200 shares per day over the past 30 days. NIC has a market cap of $1.5 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.43 and a short float of 3.8% with 9.15 days to cover. Shares are up 18.5% year-to-date as of the close of trading on Friday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

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:
  • Powered by its strong earnings growth of 35.71% and other important driving factors, this stock has surged by 36.85% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, EGOV should continue to move higher despite the fact that it has already enjoyed a very nice gain 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 ($0.70 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.
  • EGOV's revenue growth trails the industry average of 24.4%. 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.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

Stocks Drift, Oil Steadies, Dollar Dips as Investors Question Growth Prospects

Stocks Drift, Oil Steadies, Dollar Dips as Investors Question Growth Prospects

Netflix, Amazon, Jerome Powell, Walmart and Microsoft - 5 Things You Must Know

Netflix, Amazon, Jerome Powell, Walmart and Microsoft - 5 Things You Must Know

Did Netflix Earnings Just Stomp Out Any Chance of a Big Market Rally?

Did Netflix Earnings Just Stomp Out Any Chance of a Big Market Rally?

Netflix's Subscriber Miss and 4 Other Stories to Watch Premarket Tuesday

Netflix's Subscriber Miss and 4 Other Stories to Watch Premarket Tuesday

3 Stocks Poised to Move the Markets This Week: Goldman Sachs, Microsoft, GE

3 Stocks Poised to Move the Markets This Week: Goldman Sachs, Microsoft, GE