Strong On High Relative Volume: Matson (MATX)
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Matson as such a stock due to the following factors:
- MATX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.3 million.
- MATX has traded 152,484 shares today.
- MATX is trading at 19.18 times the normal volume for the stock at this time of day.
- MATX is trading at a new high 9.18% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on MATX:
Matson, Inc., together with its subsidiaries, operates as an ocean freight carrier in the Pacific. It operates in two segments, Ocean Transportation and Logistics. The stock currently has a dividend yield of 1.6%. MATX has a PE ratio of 24. Currently there are 3 analysts that rate Matson a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Matson has been 262,400 shares per day over the past 30 days. Matson has a market cap of $2.0 billion and is part of the services sector and transportation industry. The stock has a beta of 1.42 and a short float of 4.3% with 5.80 days to cover. Shares are up 34.4% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Matson as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 20.3%. Since the same quarter one year prior, revenues slightly increased by 2.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to the other companies in the Marine industry and the overall market, MATSON INC's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- Net operating cash flow has significantly increased by 196.33% to $56.60 million when compared to the same quarter last year. In addition, MATSON INC has also vastly surpassed the industry average cash flow growth rate of -67.17%.
- Compared to its closing price of one year ago, MATX's share price has jumped by 62.44%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- MATSON INC's earnings per share declined by 45.2% 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, MATSON INC increased its bottom line by earning $1.63 versus $1.25 in the prior year. This year, the market expects an improvement in earnings ($2.35 versus $1.63).
- You can view the full Matson Ratings Report.
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