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 weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Carpenter Technology as such a stock due to the following factors:
- CRS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.6 million.
- CRS has traded 53,733 shares today.
- CRS is trading at 3.82 times the normal volume for the stock at this time of day.
- CRS is trading at a new low 4.18% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 CRS:
Carpenter Technology Corporation manufactures, fabricates, and distributes specialty metals worldwide. The company operates in two segments: Specialty Alloys Operations and Performance Engineered Products. The stock currently has a dividend yield of 1.8%. CRS has a PE ratio of 19.1. Currently there are 3 analysts that rate Carpenter Technology a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Carpenter Technology has been 350,500 shares per day over the past 30 days. Carpenter Technology has a market cap of $2.1 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.81 and a short float of 3.2% with 2.70 days to cover. Shares are down 26.2% year-to-date as of the close of trading on Wednesday.
rates Carpenter Technology as a
. The company's strengths can be seen in multiple areas, such as its revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and poor profit margins.
Highlights from the ratings report include:
- CRS's revenue growth has slightly outpaced the industry average of 4.6%. Since the same quarter one year prior, revenues rose by 10.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The current debt-to-equity ratio, 0.41, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.99 is somewhat weak and could be cause for future problems.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Metals & Mining industry and the overall market, CARPENTER TECHNOLOGY CORP's return on equity has significantly outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- The gross profit margin for CARPENTER TECHNOLOGY CORP is rather low; currently it is at 18.08%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.45% significantly trails the industry average.
- Net operating cash flow has significantly decreased to $15.00 million or 76.56% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full Carpenter Technology Ratings Report.