Strong And Under The Radar Today: AAON (AAON)

Trade-Ideas LLC identified AAON (AAON) as a strong and under the radar candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

AAON

(

AAON

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified AAON as such a stock due to the following factors:

  • AAON has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.0 million.
  • AAON has traded 1.44779999999999997584154698415659368038177490234375 options contracts today.
  • AAON is making at least a new 3-day high.
  • AAON has a PE ratio of 3.
  • AAON is mentioned 0.61 times per day on StockTwits.
  • AAON has not yet been mentioned on StockTwits today.
  • AAON is currently in the upper 20% of its 1-year range.
  • AAON is in the upper 35% of its 20-day range.
  • AAON is in the upper 45% of its 5-day range.
  • AAON 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 AAON:

AAON, Inc., together with its subsidiaries, manufactures and sells air-conditioning and heating equipment in the United States and Canada. The stock currently has a dividend yield of 0.8%. AAON has a PE ratio of 3. Currently there are no analysts that rate AAON a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for AAON has been 161,300 shares per day over the past 30 days. AAON has a market cap of $1.4 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.02 and a short float of 3.8% with 8.58 days to cover. Shares are up 18.1% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates AAON as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • AAON's revenue growth has slightly outpaced the industry average of 10.9%. Since the same quarter one year prior, revenues rose by 11.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • AAON has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, AAON has a quick ratio of 2.24, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 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. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • AAON INC has improved earnings per share by 33.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, AAON INC increased its bottom line by earning $0.83 versus $0.78 in the prior year. This year, the market expects an improvement in earnings ($0.98 versus $0.83).
  • Net operating cash flow has significantly increased by 251.74% to $15.25 million when compared to the same quarter last year. In addition, AAON INC has also vastly surpassed the industry average cash flow growth rate of 50.26%.

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