Trade-Ideas LLC identified

Celanese

(

CE

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Celanese as such a stock due to the following factors:

  • CE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $50.5 million.
  • CE has traded 352.79099999999999681676854379475116729736328125 options contracts today.
  • CE is making at least a new 3-day high.
  • CE has a PE ratio of 32.
  • CE is mentioned 1.16 times per day on StockTwits.
  • CE has not yet been mentioned on StockTwits today.
  • CE is currently in the upper 20% of its 1-year range.
  • CE is in the upper 35% of its 20-day range.
  • CE is in the upper 45% of its 5-day range.
  • CE is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on CE:

Celanese Corporation, a technology and specialty materials company, manufactures and sells value-added chemicals, thermoplastic polymers, and other chemical-based products worldwide. The stock currently has a dividend yield of 2%. CE has a PE ratio of 32. Currently there are 5 analysts that rate Celanese a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Celanese has been 823,700 shares per day over the past 30 days. Celanese has a market cap of $10.4 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.55 and a short float of 1.5% with 2.81 days to cover. Shares are up 5% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Celanese as a

buy

. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, growth in earnings per share and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Chemicals industry. The net income increased by 8.9% when compared to the same quarter one year prior, going from $236.00 million to $257.00 million.
  • The debt-to-equity ratio is somewhat low, currently at 0.98, 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, CE has a quick ratio of 1.63, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has slightly increased to $287.00 million or 6.29% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -20.84%.
  • CELANESE CORP has improved earnings per share by 13.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CELANESE CORP reported lower earnings of $1.91 versus $4.03 in the prior year. This year, the market expects an improvement in earnings ($6.58 versus $1.91).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 7.3%. Since the same quarter one year prior, revenues slightly dropped by 3.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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