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 and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Ashland as such a stock due to the following factors:
- ASH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $98.8 million.
- ASH is making at least a new 3-day high.
- ASH has a PE ratio of 120.2.
- ASH is mentioned 1.71 times per day on StockTwits.
- ASH has not yet been mentioned on StockTwits today.
- ASH is currently in the upper 20% of its 1-year range.
- ASH is in the upper 35% of its 20-day range.
- ASH is in the upper 45% of its 5-day range.
- ASH 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 ASH:
Ashland Inc. operates as a specialty chemicals company worldwide. The company operates through Ashland Specialty Ingredients, Ashland Performance Materials, and Ashland Consumer Markets. The stock currently has a dividend yield of 1.2%. ASH has a PE ratio of 120.2. Currently there are 6 analysts that rate Ashland a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Ashland has been 981,700 shares per day over the past 30 days. Ashland has a market cap of $8.7 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 0.54 and a short float of 7.3% with 5.56 days to cover. Shares are up 16.3% year-to-date as of the close of trading on Wednesday.
rates Ashland as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The debt-to-equity ratio is somewhat low, currently at 0.92, 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, ASH has a quick ratio of 1.54, which demonstrates the ability of the company to cover short-term liquidity needs.
- Compared to its closing price of one year ago, ASH's share price has jumped by 25.82%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- ASHLAND INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, ASHLAND INC reported lower earnings of $0.90 versus $7.87 in the prior year. This year, the market expects an improvement in earnings ($7.47 versus $0.90).
- ASH, with its decline in revenue, underperformed when compared the industry average of 9.8%. Since the same quarter one year prior, revenues fell by 19.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Chemicals industry. The net income has significantly decreased by 83.2% when compared to the same quarter one year ago, falling from $405.00 million to $68.00 million.
- You can view the full Ashland Ratings Report.