Strong On High Volume: Gentex (GNTX)
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Gentex as such a stock due to the following factors:
- GNTX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $34.5 million.
- GNTX has traded 1.3 million shares today.
- GNTX is trading at 11.04 times the normal volume for the stock at this time of day.
- GNTX is trading at a new high 5.02% 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 GNTX:
Gentex Corporation designs, develops, manufactures, and markets automatic-dimming rearview mirrors and electronics for the automotive industry; dimmable aircraft windows for the aviation industry; and commercial smoke alarms and signaling devices for the fire protection industry worldwide. The stock currently has a dividend yield of 2.2%. GNTX has a PE ratio of 15. Currently there are 4 analysts that rate Gentex a buy, 2 analysts rate it a sell, and 2 rate it a hold.
The average volume for Gentex has been 2.2 million shares per day over the past 30 days. Gentex has a market cap of $4.7 billion and is part of the consumer goods sector and automotive industry. The stock has a beta of 1.19 and a short float of 8.2% with 13.66 days to cover. Shares are up 2.1% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Gentex as a
. 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, expanding profit margins, growth in earnings per share and increase in net income. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- GNTX's revenue growth has slightly outpaced the industry average of 0.0%. Since the same quarter one year prior, revenues slightly increased by 9.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- GNTX's debt-to-equity ratio is very low at 0.12 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 4.40, which clearly demonstrates the ability to cover short-term cash needs.
- GENTEX CORP has improved earnings per share by 7.7% 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, GENTEX CORP increased its bottom line by earning $1.08 versus $0.98 in the prior year. This year, the market expects an improvement in earnings ($1.19 versus $1.08).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Auto Components industry average. The net income increased by 4.0% when compared to the same quarter one year prior, going from $77.18 million to $80.28 million.
- 44.76% is the gross profit margin for GENTEX CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 19.79% significantly outperformed against the industry average.
- You can view the full Gentex Ratings Report.
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