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.

Trade-Ideas LLC identified

AptarGroup

(

ATR

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified AptarGroup as such a stock due to the following factors:

  • ATR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.4 million.
  • ATR has traded 58,393 shares today.
  • ATR is trading at 12.01 times the normal volume for the stock at this time of day.
  • ATR is trading at a new high 7.01% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on ATR:

AptarGroup, Inc. develops, manufactures, and sells consumer product dispensing systems worldwide. The company operates in three segments: Beauty + Home, Pharma, and Food + Beverage. The stock currently has a dividend yield of 1.8%. ATR has a PE ratio of 22. Currently there are 2 analysts that rate AptarGroup a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for AptarGroup has been 351,000 shares per day over the past 30 days. AptarGroup has a market cap of $3.8 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.26 and a short float of 3.7% with 8.61 days to cover. Shares are down 6.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates AptarGroup as a

buy

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity and good cash flow from operations. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • The debt-to-equity ratio is somewhat low, currently at 0.81, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, ATR has a quick ratio of 2.22, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Containers & Packaging industry and the overall market on the basis of return on equity, APTARGROUP INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • Net operating cash flow has increased to $39.08 million or 21.93% when compared to the same quarter last year. Despite an increase in cash flow of 21.93%, APTARGROUP INC is still growing at a significantly lower rate than the industry average of 4793.92%.
  • APTARGROUP INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, APTARGROUP INC increased its bottom line by earning $2.86 versus $2.53 in the prior year. For the next year, the market is expecting a contraction of 2.1% in earnings ($2.80 versus $2.86).
  • ATR, with its decline in revenue, underperformed when compared the industry average of 0.4%. Since the same quarter one year prior, revenues fell by 12.8%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

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