Today's Strong And Under The Radar Stock Is American Vanguard (AVD)

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

Trade-Ideas LLC identified

American Vanguard

(

AVD

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

  • AVD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.6 million.
  • AVD has traded 47.37310000000000087538865045644342899322509765625 options contracts today.
  • AVD is making at least a new 3-day high.
  • AVD has a PE ratio of 79.
  • AVD is mentioned 0.39 times per day on StockTwits.
  • AVD has not yet been mentioned on StockTwits today.
  • AVD is currently in the upper 20% of its 1-year range.
  • AVD is in the upper 35% of its 20-day range.
  • AVD is in the upper 45% of its 5-day range.
  • AVD 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 AVD:

American Vanguard Corporation, through its subsidiaries, develops, manufactures, and markets specialty chemicals for agricultural, commercial, and consumer uses in the United States and internationally. The stock currently has a dividend yield of 0.6%. AVD has a PE ratio of 79. Currently there are 2 analysts that rate American Vanguard a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for American Vanguard has been 196,700 shares per day over the past 30 days. American Vanguard has a market cap of $416.1 million and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.03 and a short float of 10.2% with 16.75 days to cover. Shares are up 24.4% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates American Vanguard as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 18.9%. Since the same quarter one year prior, revenues slightly increased by 1.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Chemicals industry. The net income increased by 278.7% when compared to the same quarter one year prior, rising from $0.73 million to $2.77 million.
  • The current debt-to-equity ratio, 0.35, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.88 is somewhat weak and could be cause for future problems.
  • AMERICAN VANGUARD CORP reported significant earnings per share improvement 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, AMERICAN VANGUARD CORP reported lower earnings of $0.17 versus $1.20 in the prior year. This year, the market expects an improvement in earnings ($0.19 versus $0.17).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Chemicals industry and the overall market, AMERICAN VANGUARD CORP's return on equity significantly trails that of both the industry average and the S&P 500.

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