Skip to main content

Trade-Ideas LLC identified

Rayonier Advanced Materials

(

RYAM

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Rayonier Advanced Materials as such a stock due to the following factors:

  • RYAM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.8 million.
  • RYAM has traded 70,443 shares today.
  • RYAM is trading at 2.28 times the normal volume for the stock at this time of day.
  • RYAM is trading at a new high 3.03% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 RYAM with the Ticky from Trade-Ideas. See the FREE profile for RYAM NOW at Trade-Ideas

More details on RYAM:

Rayonier Advanced Materials Inc. manufactures and sells cellulose specialty products in the United States, China, Japan, Canada, Europe, Latin America, other Asian countries, and internationally. The stock currently has a dividend yield of 1.9%. RYAM has a PE ratio of 1. Currently there is 1 analyst that rates Rayonier Advanced Materials a buy, 2 analysts rate it a sell, and none rate it a hold.

The average volume for Rayonier Advanced Materials has been 577,000 shares per day over the past 30 days. Rayonier Advanced has a market cap of $647.9 million and is part of the basic materials sector and chemicals industry. Shares are up 51.7% year-to-date as of the close of trading on Friday.

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 Rayonier Advanced Materials as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and poor profit margins.

Highlights from the ratings report include:

  • The debt-to-equity ratio is very high at 277.44 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, RYAM's quick ratio is somewhat strong at 1.37, demonstrating the ability to handle short-term liquidity needs.
  • The gross profit margin for RAYONIER ADVANCED MATERIALS is currently lower than what is desirable, coming in at 28.62%. Regardless of RYAM's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, RYAM's net profit margin of 9.59% compares favorably to the industry average.
  • RAYONIER ADVANCED MATERIALS 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 year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, RAYONIER ADVANCED MATERIALS increased its bottom line by earning $1.30 versus $0.02 in the prior year. For the next year, the market is expecting a contraction of 12.5% in earnings ($1.14 versus $1.30).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 5.5%. Since the same quarter one year prior, revenues slightly dropped by 1.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Net operating cash flow has increased to $73.97 million or 31.67% when compared to the same quarter last year. Despite an increase in cash flow, RAYONIER ADVANCED MATERIALS's cash flow growth rate is still lower than the industry average growth rate of 75.87%.

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.