Strong And Under The Radar: Valmont Industries (VMI)

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

Trade-Ideas LLC identified

Valmont Industries

(

VMI

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

  • VMI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.4 million.
  • VMI has traded 80.7760999999999995679900166578590869903564453125 options contracts today.
  • VMI is making at least a new 3-day high.
  • VMI has a PE ratio of 77.
  • VMI is mentioned 0.32 times per day on StockTwits.
  • VMI has not yet been mentioned on StockTwits today.
  • VMI is currently in the upper 20% of its 1-year range.
  • VMI is in the upper 35% of its 20-day range.
  • VMI is in the upper 45% of its 5-day range.
  • VMI 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 VMI:

Valmont Industries, Inc. produces and sells fabricated metal products in the Unites States and internationally. It operates through five segments: Engineered Support Structures, Energy and Mining, Utility Support Structures, Coatings, and Irrigation. The stock currently has a dividend yield of 1.1%. VMI has a PE ratio of 77. Currently there is 1 analyst that rates Valmont Industries a buy, no analysts rate it a sell, and 8 rate it a hold.

The average volume for Valmont Industries has been 198,400 shares per day over the past 30 days. Valmont has a market cap of $3.0 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 0.89 and a short float of 6% with 8.06 days to cover. Shares are up 24.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Valmont Industries as a

hold

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and poor profit margins.

Highlights from the ratings report include:

  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Construction & Engineering industry. The net income increased by 7.3% when compared to the same quarter one year prior, going from $30.74 million to $32.97 million.
  • VALMONT INDUSTRIES INC has improved earnings per share by 13.3% in the most recent quarter compared to 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, VALMONT INDUSTRIES INC reported lower earnings of $1.65 versus $7.04 in the prior year. This year, the market expects an improvement in earnings ($6.42 versus $1.65).
  • The gross profit margin for VALMONT INDUSTRIES INC is currently lower than what is desirable, coming in at 30.43%. Regardless of VMI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, VMI's net profit margin of 5.52% compares favorably to the industry average.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. When compared to other companies in the Construction & Engineering industry and the overall market, VALMONT INDUSTRIES INC's return on equity is below that of both the industry average and the S&P 500.

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