FMC (FMC) Is Strong On High Volume Today
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified FMC as such a stock due to the following factors:
- FMC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $97.4 million.
- FMC has traded 201,528 shares today.
- FMC is trading at 3.65 times the normal volume for the stock at this time of day.
- FMC is trading at a new high 3.06% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 FMC:
FMC Corporation, a diversified chemical company, provides solutions, applications, and products for the agricultural, consumer, and industrial markets worldwide. The company operates through three segments: FMC Agricultural Solutions, FMC Health and Nutrition, and FMC Lithium. The stock currently has a dividend yield of 1.4%. Currently there are 7 analysts that rate FMC a buy, 2 analysts rate it a sell, and 4 rate it a hold.
The average volume for FMC has been 1.3 million shares per day over the past 30 days. FMC has a market cap of $6.3 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.76 and a short float of 8.7% with 4.67 days to cover. Shares are up 20.1% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates FMC as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 7.1%. Since the same quarter one year prior, revenues rose by 21.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 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 203.2% when compared to the same quarter one year prior, rising from -$46.80 million to $48.30 million.
- FMC CORP reported significant earnings per share improvement 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, FMC CORP swung to a loss, reporting -$1.41 versus $2.18 in the prior year. This year, the market expects an improvement in earnings ($2.65 versus -$1.41).
- FMC has underperformed the S&P 500 Index, declining 19.89% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Chemicals industry and the overall market, FMC CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full FMC Ratings Report.
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