Rexnord (RXN) Showing Signs Of Being Strong And Under The Radar
Trade-Ideas LLC identified
(
) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Rexnord as such a stock due to the following factors:
- RXN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.5 million.
- RXN has traded 19.65670000000000072759576141834259033203125 options contracts today.
- RXN is making at least a new 3-day high.
- RXN has a PE ratio of 32.
- RXN is mentioned 0.90 times per day on StockTwits.
- RXN has not yet been mentioned on StockTwits today.
- RXN is currently in the upper 20% of its 1-year range.
- RXN is in the upper 35% of its 20-day range.
- RXN is in the upper 45% of its 5-day range.
- RXN 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 RXN:
Rexnord Corporation designs, manufactures, and markets process and motion control, and water management products worldwide. The company operates in two segments, Process & Motion Control Platform and Water Management Platform. RXN has a PE ratio of 32. Currently there are 4 analysts that rate Rexnord a buy, 1 analyst rates it a sell, and 4 rate it a hold.
The average volume for Rexnord has been 658,800 shares per day over the past 30 days. Rexnord has a market cap of $2.1 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.77 and a short float of 2.8% with 3.98 days to cover. Shares are up 17.2% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Rexnord as a
. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.
Highlights from the ratings report include:
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 13.0%. Since the same quarter one year prior, revenues slightly dropped by 5.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- 37.11% is the gross profit margin for REXNORD CORP which we consider to be strong. Regardless of RXN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -0.08% trails the industry average.
- REXNORD CORP 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. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, REXNORD CORP reported lower earnings of $0.67 versus $0.87 in the prior year. This year, the market expects an improvement in earnings ($1.50 versus $0.67).
- Net operating cash flow has decreased to $68.80 million or 12.80% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, REXNORD CORP has marginally lower results.
- The share price of REXNORD CORP has not done very well: it is down 10.19% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
- You can view the full Rexnord Ratings Report.
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