Trade-Ideas: RealPage (RP) Is Today's Strong And Under The Radar Stock

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

  • RP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.7 million.
  • RP has traded 19.83579999999999898818714427761733531951904296875 options contracts today.
  • RP is making at least a new 3-day high.
  • RP is mentioned 1.39 times per day on StockTwits.
  • RP has not yet been mentioned on StockTwits today.
  • RP is currently in the upper 20% of its 1-year range.
  • RP is in the upper 35% of its 20-day range.
  • RP is in the upper 45% of its 5-day range.
  • RP 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 RP:

RealPage, Inc. provides software and software-enabled services for the rental housing and vacation rental industries in the United States. Currently there are 3 analysts that rate RealPage a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for RealPage has been 337,400 shares per day over the past 30 days. RealPage has a market cap of $2.0 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.15 and a short float of 2.3% with 3.65 days to cover. Shares are up 12% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates RealPage as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 1.1%. Since the same quarter one year prior, revenues rose by 16.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Powered by its strong earnings growth of 300.00% and other important driving factors, this stock has surged by 32.03% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • The current debt-to-equity ratio, 0.38, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 1.00 is somewhat weak and could be cause for future problems.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Software industry and the overall market, REALPAGE INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Software industry average, but is greater than that of the S&P 500. The net income increased by 286.3% when compared to the same quarter one year prior, rising from -$1.61 million to $3.00 million.

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