Itron (ITRI) Highlighted As Strong And Under The Radar Stock Of The Day

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

  • ITRI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.3 million.
  • ITRI has traded 33.1193999999999988403942552395164966583251953125 options contracts today.
  • ITRI is making at least a new 3-day high.
  • ITRI has a PE ratio of 13.
  • ITRI is mentioned 1.68 times per day on StockTwits.
  • ITRI has not yet been mentioned on StockTwits today.
  • ITRI is currently in the upper 20% of its 1-year range.
  • ITRI is in the upper 35% of its 20-day range.
  • ITRI is in the upper 45% of its 5-day range.
  • ITRI 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 ITRI:

Itron, Inc. provides metering solutions to electricity, gas, and water utility markets worldwide. The company operates through three segments: Electricity, Gas, and Water. ITRI has a PE ratio of 13. Currently there are 2 analysts that rate Itron a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Itron has been 194,000 shares per day over the past 30 days. Itron has a market cap of $1.6 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.07 and a short float of 5.6% with 11.09 days to cover. Shares are up 18% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Itron as a hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from the ratings report include:
  • ITRON INC reported significant earnings per share improvement 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. This trend suggests that the performance of the business is improving. During the past fiscal year, ITRON INC turned its bottom line around by earning $0.33 versus -$0.62 in the prior year. This year, the market expects an improvement in earnings ($2.10 versus $0.33).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 119.1% when compared to the same quarter one year prior, rising from -$47.04 million to $8.99 million.
  • ITRI, with its decline in revenue, slightly underperformed the industry average of 4.0%. Since the same quarter one year prior, revenues slightly dropped by 2.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Powered by its strong earnings growth of 119.00% and other important driving factors, this stock has surged by 41.66% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
  • The gross profit margin for ITRON INC is currently lower than what is desirable, coming in at 32.77%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.81% significantly trails the industry average.

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