Trade-Ideas: Granite Construction (GVA) Is Today's Strong And Under The Radar Stock
Trade-Ideas LLC identified
(
) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Granite Construction as such a stock due to the following factors:
- GVA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.1 million.
- GVA has traded 22.328399999999998470912032644264400005340576171875 options contracts today.
- GVA is making at least a new 3-day high.
- GVA has a PE ratio of 3.
- GVA is mentioned 1.03 times per day on StockTwits.
- GVA has not yet been mentioned on StockTwits today.
- GVA is currently in the upper 20% of its 1-year range.
- GVA is in the upper 35% of its 20-day range.
- GVA is in the upper 45% of its 5-day range.
- GVA 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 GVA:
Granite Construction Incorporated operates as a heavy civil contractor and a construction materials producer in the United States. The company operates through Construction, Large Project Construction, and Construction Materials segments. The stock currently has a dividend yield of 1.1%. GVA has a PE ratio of 3. Currently there are 6 analysts that rate Granite Construction a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Granite Construction has been 305,500 shares per day over the past 30 days. Granite Construction has a market cap of $1.8 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.22 and a short float of 4.5% with 5.66 days to cover. Shares are up 4.6% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates Granite Construction 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, solid stock price performance and notable return on equity. 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 9.4%. Since the same quarter one year prior, revenues slightly increased by 4.6%. 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.
- The current debt-to-equity ratio, 0.31, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.17, which illustrates the ability to avoid short-term cash problems.
- Compared to its closing price of one year ago, GVA's share price has jumped by 28.27%, exceeding the performance of the broader market during that same time frame. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- GRANITE CONSTRUCTION INC's earnings per share declined by 27.3% 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, GRANITE CONSTRUCTION INC increased its bottom line by earning $1.51 versus $0.62 in the prior year. This year, the market expects an improvement in earnings ($1.82 versus $1.51).
- 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 Construction & Engineering industry and the overall market on the basis of return on equity, GRANITE CONSTRUCTION INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- You can view the full Granite Construction Ratings Report.
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