Trade-Ideas LLC identified

AAON

(

AAON

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

  • AAON has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.4 million.
  • AAON has traded 6.7760999999999995679900166578590869903564453125 options contracts today.
  • AAON is making at least a new 3-day high.
  • AAON has a PE ratio of 29.
  • AAON is mentioned 0.42 times per day on StockTwits.
  • AAON has not yet been mentioned on StockTwits today.
  • AAON is currently in the upper 20% of its 1-year range.
  • AAON is in the upper 35% of its 20-day range.
  • AAON is in the upper 45% of its 5-day range.
  • AAON 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 AAON:

AAON, Inc., together with its subsidiaries, manufactures and sells air-conditioning and heating equipment in the United States and Canada. The stock currently has a dividend yield of 0.9%. AAON has a PE ratio of 29. Currently there are no analysts that rate AAON a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for AAON has been 163,900 shares per day over the past 30 days. AAON has a market cap of $1.3 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.10 and a short float of 3.9% with 9.20 days to cover. Shares are up 7.5% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates AAON as a

buy

. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, solid stock price performance and expanding profit margins. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • AAON INC has improved earnings per share by 9.1% 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, AAON INC increased its bottom line by earning $0.78 versus $0.68 in the prior year. This year, the market expects an improvement in earnings ($0.93 versus $0.78).
  • AAON has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, AAON has a quick ratio of 2.30, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has increased to $24.20 million or 11.82% when compared to the same quarter last year. Despite an increase in cash flow, AAON INC's average is still marginally south of the industry average growth rate of 17.86%.
  • Compared to where it was trading a year ago, AAON's share price has not changed very much due to (a) the relatively weak year-over-year performance of the overall market, (b) the company's stagnant earnings, and (c) other mixed results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • 35.16% is the gross profit margin for AAON INC which we consider to be strong. Regardless of AAON's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, AAON's net profit margin of 14.04% compares favorably to the industry average.

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