AK Steel (AKS): Today's Weak On High Volume Stock
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified AK Steel as such a stock due to the following factors:
- AKS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $56.4 million.
- AKS has traded 2.5 million shares today.
- AKS is trading at 2.48 times the normal volume for the stock at this time of day.
- AKS is trading at a new low 3.01% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on AKS:
AK Steel Holding Corporation, through its subsidiary, AK Steel Corporation, produces flat-rolled carbon, stainless and electrical steel, and tubular products in the United States and internationally. Currently there are 2 analysts that rate AK Steel a buy, 4 analysts rate it a sell, and 7 rate it a hold.
The average volume for AK Steel has been 14.1 million shares per day over the past 30 days. AK has a market cap of $998.9 million and is part of the basic materials sector and metals & mining industry. The stock has a beta of 2.93 and a short float of 19.4% with 3.98 days to cover. Shares are up 159.8% year-to-date as of the close of trading on Monday.
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Analysis:
rates AK Steel as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, 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:
- Powered by its strong earnings growth of 95.34% and other important driving factors, this stock has surged by 71.51% 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 net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 95.5% when compared to the same quarter one year prior, rising from -$306.30 million to -$13.60 million.
- AK STEEL HOLDING CORP reported significant earnings per share improvement 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, AK STEEL HOLDING CORP reported poor results of -$2.86 versus -$0.74 in the prior year. This year, the market expects an improvement in earnings ($0.21 versus -$2.86).
- Despite the weak revenue results, AKS has significantly outperformed against the industry average of 45.3%. Since the same quarter one year prior, revenues fell by 13.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The gross profit margin for AK STEEL HOLDING CORP is currently extremely low, coming in at 10.88%. Regardless of AKS's low profit margin, it has managed to increase from the same period last year.
- You can view the full AK Steel Ratings Report.
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