Trade-Ideas LLC identified

Quanex Building Products

(

NX

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

  • NX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.6 million.
  • NX has traded 25.05969999999999942019712761975824832916259765625 options contracts today.
  • NX is making at least a new 3-day high.
  • NX has a PE ratio of 44.
  • NX is mentioned 0.90 times per day on StockTwits.
  • NX has not yet been mentioned on StockTwits today.
  • NX is currently in the upper 20% of its 1-year range.
  • NX is in the upper 35% of its 20-day range.
  • NX is in the upper 45% of its 5-day range.
  • NX 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 NX:

Quanex Building Products Corporation, together with its subsidiaries, provides engineered products in worldwide. The stock currently has a dividend yield of 0.8%. NX has a PE ratio of 44. Currently there are 2 analysts that rate Quanex Building Products a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Quanex Building Products has been 208,200 shares per day over the past 30 days. Quanex Building has a market cap of $689.6 million and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 0.46 and a short float of 3.2% with 2.28 days to cover. Shares are up 10.2% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Quanex Building Products as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, increase in net income, good cash flow from operations and solid stock price performance. 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 6.6%. Since the same quarter one year prior, revenues rose by 19.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • QUANEX BUILDING PRODUCTS 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, QUANEX BUILDING PRODUCTS increased its bottom line by earning $0.46 versus $0.23 in the prior year. This year, the market expects an improvement in earnings ($0.85 versus $0.46).
  • 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 100.6% when compared to the same quarter one year prior, rising from $4.96 million to $9.94 million.
  • Net operating cash flow has significantly increased by 258.65% to $39.54 million when compared to the same quarter last year. In addition, QUANEX BUILDING PRODUCTS has also vastly surpassed the industry average cash flow growth rate of 47.17%.
  • 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. 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.

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