Trade-Ideas LLC identified

KapStone Paper And Packaging

(

KS

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

  • KS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.3 million.
  • KS has traded 107,671 shares today.
  • KS is trading at 2.19 times the normal volume for the stock at this time of day.
  • KS is trading at a new high 4.01% 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 KS:

KapStone Paper and Packaging Corporation manufactures and sells containerboards, corrugated products, and specialty paper products in the United States and internationally. The company operates in two segments, Paper and Packaging, and Distribution. The stock currently has a dividend yield of 3.1%. KS has a PE ratio of 12. Currently there are 5 analysts that rate KapStone Paper And Packaging a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for KapStone Paper And Packaging has been 1.6 million shares per day over the past 30 days. KapStone Paper And Packaging has a market cap of $1.3 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 2.76 and a short float of 4.9% with 2.79 days to cover. Shares are down 42.5% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates KapStone Paper And Packaging as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 2.7%. Since the same quarter one year prior, revenues rose by 35.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has decreased to $85.81 million or 19.91% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Paper & Forest Products industry. The net income has significantly decreased by 65.3% when compared to the same quarter one year ago, falling from $34.10 million to $11.82 million.

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