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.

Trade-Ideas LLC identified

Graphic Packaging

(

GPK

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Graphic Packaging as such a stock due to the following factors:

  • GPK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $38.6 million.
  • GPK has traded 238,383 shares today.
  • GPK is trading at 3.02 times the normal volume for the stock at this time of day.
  • GPK is trading at a new high 4.00% 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 GPK:

Graphic Packaging Holding Company, together with its subsidiaries, provides paper-based packaging solutions to food, beverage, and other consumer products companies. The stock currently has a dividend yield of 1.4%. GPK has a PE ratio of 52.2. Currently there are 4 analysts that rate Graphic Packaging a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Graphic Packaging has been 2.9 million shares per day over the past 30 days. Graphic Packaging has a market cap of $4.6 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.92 and a short float of 1.6% with 1.74 days to cover. Shares are up 4.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Graphic Packaging as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, good cash flow from operations and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • Compared to its closing price of one year ago, GPK's share price has jumped by 47.15%, 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.
  • Net operating cash flow has slightly increased to $195.40 million or 3.66% when compared to the same quarter last year. Despite an increase in cash flow, GRAPHIC PACKAGING HOLDING CO's cash flow growth rate is still lower than the industry average growth rate of 13.68%.
  • GRAPHIC PACKAGING HOLDING CO reported flat earnings per share in the most recent quarter. 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, GRAPHIC PACKAGING HOLDING CO reported lower earnings of $0.28 versus $0.42 in the prior year. This year, the market expects an improvement in earnings ($0.73 versus $0.28).
  • GPK, with its decline in revenue, underperformed when compared the industry average of 4.4%. Since the same quarter one year prior, revenues slightly dropped by 6.9%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.

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