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 B/E Aerospace as such a stock due to the following factors:
- BEAV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $67.5 million.
- BEAV has traded 142,237 shares today.
- BEAV traded in a range 277.9% of the normal price range with a price range of $4.81.
- BEAV traded below its daily resistance level (quality: 106 days, meaning that the stock is crossing a resistance level set by the last 106 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.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in BEAV with the Ticky from Trade-Ideas. See the FREE profile for BEAV NOW at Trade-Ideas
More details on BEAV:
B/E Aerospace, Inc. designs, manufactures, sells, and services cabin interior products for commercial aircraft and business jets worldwide. It operates in three segments: Commercial Aircraft, Consumables Management, and Business Jet. BEAV has a PE ratio of 24.6. Currently there are 12 analysts that rate B/E Aerospace a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for B/E Aerospace has been 1.0 million shares per day over the past 30 days. B/E has a market cap of $8.7 billion and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 1.10 and a short float of 2.9% with 2.83 days to cover. Shares are down 3.7% year-to-date as of the close of trading on Tuesday.
rates B/E Aerospace as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the ratings report include:
- BEAV's revenue growth has slightly outpaced the industry average of 8.4%. Since the same quarter one year prior, revenues rose by 15.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- B/E AEROSPACE INC reported significant earnings per share improvement 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, B/E AEROSPACE INC increased its bottom line by earning $2.27 versus $2.23 in the prior year. This year, the market expects an improvement in earnings ($3.55 versus $2.27).
- 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 401.1% when compared to the same quarter one year prior, rising from $18.50 million to $92.70 million.
- 41.09% is the gross profit margin for B/E AEROSPACE INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 10.43% is above that of the industry average.
- Net operating cash flow has increased to $110.00 million or 41.02% when compared to the same quarter last year. Despite an increase in cash flow, B/E AEROSPACE INC's cash flow growth rate is still lower than the industry average growth rate of 70.82%.
- You can view the full B/E Aerospace Ratings Report.