Today's Strong And Under The Radar Stock: FEI (FEIC)

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

  • FEIC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $37.0 million.
  • FEIC has traded 34.91040000000000276259015663526952266693115234375 options contracts today.
  • FEIC is making at least a new 3-day high.
  • FEIC has a PE ratio of 37.
  • FEIC is mentioned 0.77 times per day on StockTwits.
  • FEIC has not yet been mentioned on StockTwits today.
  • FEIC is currently in the upper 20% of its 1-year range.
  • FEIC is in the upper 35% of its 20-day range.
  • FEIC is in the upper 45% of its 5-day range.
  • FEIC 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 FEIC:

FEI Company supplies scientific instruments and related services for nanoscale applications and solutions for industry and science. It operates through two segments, Industry Group and Science Group. The stock currently has a dividend yield of 1.1%. FEIC has a PE ratio of 37. Currently there are 2 analysts that rate FEI a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for FEI has been 586,700 shares per day over the past 30 days. FEI has a market cap of $4.3 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.07 and a short float of 2.5% with 1.45 days to cover. Shares are up 33.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates FEI 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, solid stock price performance, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 4.0%. Since the same quarter one year prior, revenues slightly increased by 3.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • FEIC 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, FEIC has a quick ratio of 1.82, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Compared to its closing price of one year ago, FEIC's share price has jumped by 34.83%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • FEI CO's earnings per share declined by 15.2% 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, FEI CO increased its bottom line by earning $2.97 versus $2.48 in the prior year. This year, the market expects an improvement in earnings ($3.63 versus $2.97).
  • Net operating cash flow has increased to $28.14 million or 21.69% when compared to the same quarter last year. Despite an increase in cash flow, FEI CO's average is still marginally south of the industry average growth rate of 23.23%.

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