Trade-Ideas LLC identified

Masonite International

(

DOOR

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

  • DOOR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.6 million.
  • DOOR has traded 7.08959999999999990194510246510617434978485107421875 options contracts today.
  • DOOR is making at least a new 3-day high.
  • DOOR has a PE ratio of 21.
  • DOOR is mentioned 0.58 times per day on StockTwits.
  • DOOR has not yet been mentioned on StockTwits today.
  • DOOR is currently in the upper 20% of its 1-year range.
  • DOOR is in the upper 35% of its 20-day range.
  • DOOR is in the upper 45% of its 5-day range.
  • DOOR 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 DOOR:

Masonite International Corporation designs, manufactures, and sells interior and exterior doors worldwide. It offers molded panel, flush, stile and rail, routed medium-density fiberboard (MDF), steel, or fiberglass residential doors. DOOR has a PE ratio of 21. Currently there are 7 analysts that rate Masonite International a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Masonite International has been 245,600 shares per day over the past 30 days. Masonite International has a market cap of $2.0 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 0.87 and a short float of 2.9% with 6.02 days to cover. Shares are up 11.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Masonite International as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, impressive record of earnings per share growth and good cash flow from operations. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • DOOR's revenue growth has slightly outpaced the industry average of 11.6%. Since the same quarter one year prior, revenues rose by 12.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.72, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.44, which illustrates the ability to avoid short-term cash problems.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Building Products industry. The net income increased by 157.4% when compared to the same quarter one year prior, rising from -$31.05 million to $17.83 million.
  • Net operating cash flow has significantly increased by 115.86% to $3.17 million when compared to the same quarter last year. Despite an increase in cash flow, MASONITE INTERNATIONAL CORP's cash flow growth rate is still lower than the industry average growth rate of 164.92%.
  • MASONITE INTERNATIONAL 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, MASONITE INTERNATIONAL CORP reported poor results of -$1.56 versus -$1.25 in the prior year. This year, the market expects an improvement in earnings ($2.85 versus -$1.56).

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