Patrick Industries (PATK) Is Weak On High Volume Today - TheStreet

Trade-Ideas LLC identified

Patrick Industries

(

PATK

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

  • PATK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.6 million.
  • PATK has traded 55,851 shares today.
  • PATK is trading at 6.50 times the normal volume for the stock at this time of day.
  • PATK is trading at a new low 8.03% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in PATK with the Ticky from Trade-Ideas. See the FREE profile for PATK NOW at Trade-Ideas

More details on PATK:

Patrick Industries, Inc. manufactures and distributes building products and materials for the recreational vehicle, manufactured housing, and industrial markets in the United States and Canada. PATK has a PE ratio of 17. Currently there are 2 analysts that rate Patrick Industries a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Patrick Industries has been 176,200 shares per day over the past 30 days. Patrick has a market cap of $721.6 million and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 0.90 and a short float of 4.6% with 3.22 days to cover. Shares are up 11.5% year-to-date as of the close of trading on Wednesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Patrick Industries as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, attractive valuation levels and notable return on equity. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 7.0%. Since the same quarter one year prior, revenues rose by 31.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • PATRICK INDUSTRIES INC 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, PATRICK INDUSTRIES INC increased its bottom line by earning $2.73 versus $1.91 in the prior year. This year, the market expects an improvement in earnings ($3.20 versus $2.73).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to other companies in the Building Products industry and the overall market on the basis of return on equity, PATRICK INDUSTRIES INC has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.