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Trade-Ideas LLC identified
) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Precision Castparts as such a stock due to the following factors:
- PCP has 10x the normal benchmarked social activity for this time of the day compared to its average of 1.19 mentions/day.
- PCP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $154.6 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.
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More details on PCP:
Precision Castparts Corp. manufactures and sells metal components and products worldwide. It operates in three segments: Investment Cast Products, Forged Products, and Airframe Products. The stock currently has a dividend yield of 0.1%. PCP has a PE ratio of 21.2. Currently there are 12 analysts that rate Precision Castparts a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Precision Castparts has been 716,100 shares per day over the past 30 days. Precision Castparts has a market cap of $36.9 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 0.43 and a short float of 0.8% with 1.83 days to cover. Shares are down 6.3% year-to-date as of the close of trading on Thursday.
rates Precision Castparts as a
. 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, impressive record of earnings per share growth, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- PCP's revenue growth has slightly outpaced the industry average of 3.2%. Since the same quarter one year prior, revenues slightly increased by 3.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.31, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.21, which illustrates the ability to avoid short-term cash problems.
- PRECISION CASTPARTS CORP has improved earnings per share by 15.9% 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, PRECISION CASTPARTS CORP increased its bottom line by earning $12.00 versus $9.75 in the prior year. This year, the market expects an improvement in earnings ($14.02 versus $12.00).
- 38.10% is the gross profit margin for PRECISION CASTPARTS CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 19.13% significantly outperformed against the industry average.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full Precision Castparts Ratings Report.