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 strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Astronics as such a stock due to the following factors:
- ATRO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.9 million.
- ATRO has traded 58,150 shares today.
- ATRO is trading at 11.52 times the normal volume for the stock at this time of day.
- ATRO is trading at a new high 3.00% 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.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in ATRO with the Ticky from Trade-Ideas. See the FREE profile for ATRO NOW at Trade-Ideas
More details on ATRO:
Astronics Corporation, through its subsidiaries, designs and manufactures products for the aerospace and defense industries worldwide. It operates in two segments, Aerospace and Test Systems. ATRO has a PE ratio of 21.6. Currently there are 3 analysts that rate Astronics a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Astronics has been 165,700 shares per day over the past 30 days. Astronics has a market cap of $703.0 million and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 0.79 and a short float of 8.4% with 7.80 days to cover. Shares are down 6.6% year-to-date as of the close of trading on Thursday.
rates Astronics as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins, good cash flow from operations, compelling growth in net income and notable return on equity. 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:
- ATRO's very impressive revenue growth greatly exceeded the industry average of 0.6%. Since the same quarter one year prior, revenues leaped by 100.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Aerospace & Defense industry. The net income increased by 138.7% when compared to the same quarter one year prior, rising from $7.16 million to $17.08 million.
- 35.31% is the gross profit margin for ASTRONICS CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 9.51% is above that of the industry average.
- Net operating cash flow has significantly increased by 168.99% to $45.27 million when compared to the same quarter last year. In addition, ASTRONICS CORP has also vastly surpassed the industry average cash flow growth rate of -10.17%.
- 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 Aerospace & Defense industry and the overall market on the basis of return on equity, ASTRONICS CORP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- You can view the full Astronics Ratings Report.