Trade-Ideas LLC identified

Continental Building Products

(

CBPX

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

  • CBPX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.0 million.
  • CBPX has traded 6.65669999999999983941734171821735799312591552734375 options contracts today.
  • CBPX is making at least a new 3-day high.
  • CBPX has a PE ratio of 24.
  • CBPX is mentioned 1.03 times per day on StockTwits.
  • CBPX has not yet been mentioned on StockTwits today.
  • CBPX is currently in the upper 20% of its 1-year range.
  • CBPX is in the upper 35% of its 20-day range.
  • CBPX is in the upper 45% of its 5-day range.
  • CBPX 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 CBPX:

Continental Building Products, Inc. manufactures and sells gypsum wallboard and complementary finishing products in the eastern United States and eastern Canada. CBPX has a PE ratio of 24. Currently there are 5 analysts that rate Continental Building Products a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Continental Building Products has been 462,700 shares per day over the past 30 days. Continental Building has a market cap of $937.7 million and is part of the industrial goods sector and materials & construction industry. Shares are up 31.8% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Continental Building Products as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in net income and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 10.0%. Since the same quarter one year prior, revenues rose by 20.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.93, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.49, which illustrates the ability to avoid short-term cash problems.
  • CONTINENTAL BUILDING PRODS 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, CONTINENTAL BUILDING PRODS increased its bottom line by earning $0.40 versus $0.37 in the prior year. This year, the market expects an improvement in earnings ($1.21 versus $0.40).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Building Products industry. The net income increased by 518.9% when compared to the same quarter one year prior, rising from $2.02 million to $12.50 million.
  • 39.00% is the gross profit margin for CONTINENTAL BUILDING PRODS which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 11.21% is above that of the industry average.

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