Trade-Ideas: Crown Holdings (CCK) Is Today's "Water-Logged And Getting Wetter" Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified Crown Holdings (CCK) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Crown Holdings as such a stock due to the following factors:
- CCK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $56.4 million.
- CCK has traded 1.2 million shares today.
- CCK traded in a range 200.9% of the normal price range with a price range of $1.28.
- CCK traded below its daily resistance level (quality: 113 days, meaning that the stock is crossing a resistance level set by the last 113 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.EXCLUSIVE OFFER: Get the inside scoop on opportunities in CCK with the Ticky from Trade-Ideas. See the FREE profile for CCK NOW at Trade-IdeasMore details on CCK: Crown Holdings, Inc. engages in the design, manufacture, and sale of packaging products for consumer goods worldwide. CCK has a PE ratio of 12.0. Currently there are 7 analysts that rate Crown Holdings a buy, no analysts rate it a sell, and 3 rate it a hold.The average volume for Crown Holdings has been 750,000 shares per day over the past 30 days. Crown has a market cap of $6.1 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.14 and a short float of 0.9% with 0.87 days to cover. Shares are up 18.1% year to date as of the close of trading on Friday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates Crown Holdings as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and feeble growth in the company's earnings per share.Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 5.5%. Since the same quarter one year prior, revenues slightly increased by 1.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- The gross profit margin for CROWN HOLDINGS INC is rather low; currently it is at 18.22%. Regardless of CCK's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, CCK's net profit margin of 5.98% compares favorably to the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Containers & Packaging industry average. The net income has decreased by 0.7% when compared to the same quarter one year ago, dropping from $134.00 million to $133.00 million.
- You can view the full Crown Holdings Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV