Strong And Under The Radar Today: WD-40 (WDFC)
Trade-Ideas LLC identified
(
) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified WD-40 as such a stock due to the following factors:
- WDFC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.1 million.
- WDFC has traded 24.05969999999999942019712761975824832916259765625 options contracts today.
- WDFC is making at least a new 3-day high.
- WDFC has a PE ratio of 35.
- WDFC is mentioned 1.16 times per day on StockTwits.
- WDFC has not yet been mentioned on StockTwits today.
- WDFC is currently in the upper 20% of its 1-year range.
- WDFC is in the upper 35% of its 20-day range.
- WDFC is in the upper 45% of its 5-day range.
- WDFC 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 WDFC:
WD-40 Company develops and sells maintenance products, and homecare and cleaning products. The stock currently has a dividend yield of 1.4%. WDFC has a PE ratio of 35. Currently there are no analysts that rate WD-40 a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for WD-40 has been 99,000 shares per day over the past 30 days. WD-40 has a market cap of $1.7 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 0.62 and a short float of 6.7% with 9.27 days to cover. Shares are up 18.8% year-to-date as of the close of trading on Friday.
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Analysis:
rates WD-40 as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 34.75% over the past year, a rise that has exceeded that of the S&P 500 Index. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- WD-40 CO has improved earnings per share by 23.7% 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, WD-40 CO increased its bottom line by earning $3.04 versus $2.87 in the prior year. This year, the market expects an improvement in earnings ($3.46 versus $3.04).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Household Products industry average. The net income increased by 20.6% when compared to the same quarter one year prior, going from $11.33 million to $13.67 million.
- The debt-to-equity ratio is somewhat low, currently at 0.84, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with this, the company maintains a quick ratio of 3.05, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for WD-40 CO is rather high; currently it is at 56.34%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 14.45% trails the industry average.
- You can view the full WD-40 Ratings Report.
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