Orbital ATK (OA) Is Today's Strong And Under The Radar Stock
Trade-Ideas LLC identified
(
) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Orbital ATK as such a stock due to the following factors:
- OA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $38.7 million.
- OA has traded 167.62700000000000954969436861574649810791015625 options contracts today.
- OA is making at least a new 3-day high.
- OA has a PE ratio of 39.
- OA is mentioned 0.68 times per day on StockTwits.
- OA has not yet been mentioned on StockTwits today.
- OA is currently in the upper 20% of its 1-year range.
- OA is in the upper 35% of its 20-day range.
- OA is in the upper 45% of its 5-day range.
- OA 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 OA:
Orbital ATK, Inc. develops and produces aerospace, defense, and aviation-related products to the U.S. Government, allied nations, prime contractors, and other customers in the United States and internationally. The stock currently has a dividend yield of 1.4%. OA has a PE ratio of 39. Currently there are 7 analysts that rate Orbital ATK a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Orbital ATK has been 448,300 shares per day over the past 30 days. Orbital ATK has a market cap of $5.1 billion and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 0.17 and a short float of 1.4% with 2.85 days to cover. Shares are down 3.6% year-to-date as of the close of trading on Monday.
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Analysis:
rates Orbital ATK as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and largely solid financial position with reasonable debt levels by most measures. 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:
- 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. Although other factors naturally played a role, the company's strong earnings growth was key.
- OA's revenue growth has slightly outpaced the industry average of 0.6%. Since the same quarter one year prior, revenues slightly increased by 9.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.80, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, OA has a quick ratio of 2.14, which demonstrates the ability of the company to cover short-term liquidity needs.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Aerospace & Defense industry. The net income increased by 392.6% when compared to the same quarter one year prior, rising from -$23.87 million to $69.84 million.
- The gross profit margin for ORBITAL ATK INC is rather low; currently it is at 24.71%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 6.55% trails that of the industry average.
- You can view the full Orbital ATK Ratings Report.
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