Trade-Ideas: Beacon Roofing Supply (BECN) Is Today's New Lifetime High Stock
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Beacon Roofing Supply as such a stock due to the following factors:
- BECN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $52.0 million.
- BECN has traded 14,496 shares today.
- BECN is trading at a new lifetime high.
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More details on BECN:
Beacon Roofing Supply, Inc., together with its subsidiaries, distributes residential and non-residential roofing materials, and other complementary building materials to contractors, home builders, building owners, and other resellers. BECN has a PE ratio of 38. Currently there are 8 analysts that rate Beacon Roofing Supply a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Beacon Roofing Supply has been 725,100 shares per day over the past 30 days. Beacon Roofing Supply has a market cap of $2.8 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.40 and a short float of 6.3% with 2.89 days to cover. Shares are up 12.1% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates Beacon Roofing Supply as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- BECN's very impressive revenue growth greatly exceeded the industry average of 2.7%. Since the same quarter one year prior, revenues leaped by 99.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- BEACON ROOFING SUPPLY INC reported significant earnings per share improvement 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 year. We feel that this trend should continue. During the past fiscal year, BEACON ROOFING SUPPLY INC increased its bottom line by earning $1.23 versus $1.07 in the prior year. This year, the market expects an improvement in earnings ($2.10 versus $1.23).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Trading Companies & Distributors industry. The net income increased by 41.5% when compared to the same quarter one year prior, rising from -$9.79 million to -$5.72 million.
- Net operating cash flow has significantly increased by 61.36% to $35.98 million when compared to the same quarter last year. In addition, BEACON ROOFING SUPPLY INC has also vastly surpassed the industry average cash flow growth rate of -0.71%.
- Powered by its strong earnings growth of 50.00% and other important driving factors, this stock has surged by 36.87% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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.
- You can view the full Beacon Roofing Supply Ratings Report.
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