Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Alliant Techsystems as such a stock due to the following factors:
- ATK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $34.1 million.
- ATK has traded 542,628 shares today.
- ATK traded in a range 205.4% of the normal price range with a price range of $6.95.
- ATK traded below its daily resistance level (quality: 356 days, meaning that the stock is crossing a resistance level set by the last 356 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on ATK:
Alliant Techsystems Inc. develops and produces aerospace, defense, and commercial products to the U.S. government, allied nations, and prime contractors in the United States, Puerto Rico, and internationally. The stock currently has a dividend yield of 1%. ATK has a PE ratio of 12.1. Currently there are 3 analysts that rate Alliant Techsystems a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for Alliant Techsystems has been 255,100 shares per day over the past 30 days. Alliant Techsystems has a market cap of $4.1 billion and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 0.08 and a short float of 1.3% with 1.36 days to cover. Shares are down 0.3% year-to-date as of the close of trading on Wednesday.
rates Alliant Techsystems as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 0.7%. Since the same quarter one year prior, revenues rose by 17.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. 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.
- ALLIANT TECHSYSTEMS INC has improved earnings per share by 15.6% 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, ALLIANT TECHSYSTEMS INC increased its bottom line by earning $10.46 versus $8.32 in the prior year. This year, the market expects an improvement in earnings ($11.75 versus $10.46).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Aerospace & Defense industry average. The net income increased by 18.8% when compared to the same quarter one year prior, going from $72.04 million to $85.60 million.
- You can view the full Alliant Techsystems Ratings Report.