Matthews International Corporation (MATW) Is Today's Strong And Under The Radar Stock - TheStreet

Trade-Ideas LLC identified

Matthews International Corporation

(

MATW

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

  • MATW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.0 million.
  • MATW has traded 0.98509999999999997566391130021656863391399383544921875 options contracts today.
  • MATW is making at least a new 3-day high.
  • MATW has a PE ratio of 36.
  • MATW is mentioned 0.13 times per day on StockTwits.
  • MATW has not yet been mentioned on StockTwits today.
  • MATW is currently in the upper 20% of its 1-year range.
  • MATW is in the upper 35% of its 20-day range.
  • MATW is in the upper 45% of its 5-day range.
  • MATW 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 MATW:

Matthews International Corporation designs, manufactures, and markets memorialization products and solutions for the cemetery and funeral home industries in the United States, Central and South America, Canada, Europe, Australia, and Asia. The stock currently has a dividend yield of 0.9%. MATW has a PE ratio of 36. Currently there are 2 analysts that rate Matthews International Corporation a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Matthews International Corporation has been 125,100 shares per day over the past 30 days. Matthews International has a market cap of $1.9 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.67 and a short float of 3.3% with 10.00 days to cover. Shares are up 16.6% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Matthews International Corporation as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, expanding profit margins and good cash flow from operations. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 5.4%. Since the same quarter one year prior, revenues rose by 30.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.92, 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 1.41, 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 Commercial Services & Supplies industry. The net income increased by 21.5% when compared to the same quarter one year prior, going from $19.04 million to $23.14 million.
  • 41.29% is the gross profit margin for MATTHEWS INTL 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 6.34% trails the industry average.
  • Net operating cash flow has increased to $48.22 million or 20.74% when compared to the same quarter last year. Despite an increase in cash flow, MATTHEWS INTL CORP's average is still marginally south of the industry average growth rate of 22.33%.

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