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 pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Rexnord as such a stock due to the following factors:
- RXN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.8 million.
- RXN traded 106,302 shares today in the pre-market hours as of 7:44 AM, representing 25.1% of its average daily volume.
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More details on RXN:
Rexnord Corporation designs, manufactures, markets, and services process and motion control, and water management products worldwide. The company operates through two segments, Process & Motion Control Platform and Water Management Platform. RXN has a PE ratio of 88.7. Currently there are 2 analysts that rate Rexnord a buy, 1 analyst rates it a sell, and 1 rates it a hold.
The average volume for Rexnord has been 307,800 shares per day over the past 30 days. Rexnord has a market cap of $2.8 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.47 and a short float of 4.2% with 2.92 days to cover. Shares are up 3.3% year-to-date as of the close of trading on Tuesday.
rates Rexnord as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 6.4%. Since the same quarter one year prior, revenues slightly increased by 3.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- REXNORD CORP 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, REXNORD CORP increased its bottom line by earning $0.55 versus $0.39 in the prior year. This year, the market expects an improvement in earnings ($1.66 versus $0.55).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Machinery industry. The net income increased by 211.9% when compared to the same quarter one year prior, rising from $9.20 million to $28.70 million.
- Net operating cash flow has significantly increased by 107.63% to $84.30 million when compared to the same quarter last year. In addition, REXNORD CORP has also vastly surpassed the industry average cash flow growth rate of -4.30%.
- 39.91% is the gross profit margin for REXNORD CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 5.86% trails the industry average.
- You can view the full Rexnord Ratings Report.