Trade-Ideas LLC identified

Worthington Industries

(

WOR

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

  • WOR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.5 million.
  • WOR has traded 86.17910000000000536601874046027660369873046875 options contracts today.
  • WOR is making at least a new 3-day high.
  • WOR has a PE ratio of 34.
  • WOR is mentioned 0.77 times per day on StockTwits.
  • WOR has not yet been mentioned on StockTwits today.
  • WOR is currently in the upper 20% of its 1-year range.
  • WOR is in the upper 35% of its 20-day range.
  • WOR is in the upper 45% of its 5-day range.
  • WOR 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 WOR:

Worthington Industries, Inc., a metals manufacturing company, focuses on value-added steel processing and manufactured metal products in the United States, Europe, Mexico, Canada, and internationally. It operates through three segments: Steel Processing, Pressure Cylinders, and Engineered Cabs. The stock currently has a dividend yield of 2.5%. WOR has a PE ratio of 34. Currently there are no analysts that rate Worthington Industries a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Worthington Industries has been 350,600 shares per day over the past 30 days. Worthington has a market cap of $1.9 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 1.12 and a short float of 4.3% with 8.32 days to cover. Shares are up 1.3% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Worthington Industries as a

hold

. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and relatively strong performance when compared with the S&P 500 during the past year. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and feeble growth in the company's earnings per share.

Highlights from the ratings report include:

  • Net operating cash flow has significantly increased by 3490.63% to $50.59 million when compared to the same quarter last year. In addition, WORTHINGTON INDUSTRIES has also vastly surpassed the industry average cash flow growth rate of -31.85%.
  • Despite the weak revenue results, WOR has significantly outperformed against the industry average of 50.5%. Since the same quarter one year prior, revenues fell by 19.6%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • WOR's debt-to-equity ratio of 0.88 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.97 is weak.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, WORTHINGTON INDUSTRIES has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • The gross profit margin for WORTHINGTON INDUSTRIES is rather low; currently it is at 18.54%. Regardless of WOR's low profit margin, it has managed to increase from the same period last year.

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