Motorcar Parts Of America (MPAA) Highlighted As Strong And Under The Radar Stock Of The Day
Trade-Ideas LLC identified
(
) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Motorcar Parts of America as such a stock due to the following factors:
- MPAA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.7 million.
- MPAA has traded 9.1791000000000000369482222595252096652984619140625 options contracts today.
- MPAA is making at least a new 3-day high.
- MPAA has a PE ratio of 108.
- MPAA is mentioned 1.58 times per day on StockTwits.
- MPAA has not yet been mentioned on StockTwits today.
- MPAA is currently in the upper 20% of its 1-year range.
- MPAA is in the upper 35% of its 20-day range.
- MPAA is in the upper 45% of its 5-day range.
- MPAA 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 MPAA:
Motorcar Parts of America, Inc. remanufactures, manufactures, and distributes automotive aftermarket parts. MPAA has a PE ratio of 108. Currently there are 3 analysts that rate Motorcar Parts of America a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Motorcar Parts of America has been 234,600 shares per day over the past 30 days. Motorcar Parts of America has a market cap of $692.3 million and is part of the consumer goods sector and automotive industry. The stock has a beta of 0.78 and a short float of 7.7% with 3.56 days to cover. Shares are up 21.8% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Motorcar Parts of America as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 13.1%. Since the same quarter one year prior, revenues rose by 29.4%. 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.
- MPAA's debt-to-equity ratio is very low at 0.20 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.25 is very weak and demonstrates a lack of ability to pay short-term obligations.
- MOTORCAR PARTS OF AMER INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, MOTORCAR PARTS OF AMER INC increased its bottom line by earning $0.66 versus $0.43 in the prior year. This year, the market expects an improvement in earnings ($2.22 versus $0.66).
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Auto Components industry. The net income has significantly decreased by 194.4% when compared to the same quarter one year ago, falling from $1.48 million to -$1.39 million.
- You can view the full Motorcar Parts of America Ratings Report.
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