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

Alpha Pro Tech

(

APT

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Alpha Pro Tech as such a stock due to the following factors:

  • APT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $29.4 million.
  • APT has traded 120,923 shares today.
  • APT is down 5.3% today.
  • APT was up 5.6% yesterday.

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More details on APT:

Alpha Pro Tech, Ltd. is engaged in developing, manufacturing, and marketing a line of disposable protective apparel, building supply products, and infection control products in the United States and internationally. APT has a PE ratio of 25.9.

The average volume for Alpha Pro Tech has been 4.3 million shares per day over the past 30 days. Alpha Pro Tech has a market cap of $71.0 million and is part of the health care sector and health services industry. The stock has a beta of 0.66 and a short float of 4.1% with 0.08 days to cover. Shares are up 65.1% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Alpha Pro Tech as a

hold

. 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 and solid stock price performance. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

Highlights from the ratings report include:

  • APT's revenue growth has slightly outpaced the industry average of 1.7%. Since the same quarter one year prior, revenues slightly increased by 4.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • APT has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 7.22, which clearly demonstrates the ability to cover short-term cash needs.
  • ALPHA PRO TECH LTD reported flat earnings per share in the most recent quarter. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, ALPHA PRO TECH LTD increased its bottom line by earning $0.11 versus $0.05 in the prior year.
  • 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. When compared to other companies in the Building Products industry and the overall market, ALPHA PRO TECH LTD's return on equity is below that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $1.81 million or 15.04% when compared to the same quarter last year. Despite a decrease in cash flow of 15.04%, ALPHA PRO TECH LTD is in line with the industry average cash flow growth rate of -21.61%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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