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Trade-Ideas LLC identified
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Spirit AeroSystems Holdings as such a stock due to the following factors:
- SPR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $45.4 million.
- SPR has traded 1.5 million shares today.
- SPR traded in a range 205% of the normal price range with a price range of $2.24.
- SPR traded below its daily resistance level (quality: 2 days, meaning that the stock is crossing a resistance level set by the last 2 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on SPR:
Spirit AeroSystems Holdings, Inc., through its subsidiaries, operates as a non-original equipment manufacturer (OEM) that designs and manufactures commercial aerostructures worldwide. It operates in three segments: Fuselage Systems, Propulsion Systems, and Wing Systems. Currently there are 9 analysts that rate Spirit AeroSystems Holdings a buy, no analysts rate it a sell, and 6 rate it a hold.
The average volume for Spirit AeroSystems Holdings has been 1.4 million shares per day over the past 30 days. Spirit AeroSystems has a market cap of $5.2 billion and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 1.29 and a short float of 2.6% with 2.19 days to cover. Shares are up 14.6% year-to-date as of the close of trading on Thursday.
rates Spirit AeroSystems Holdings as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, increase in net income, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 0.7%. Since the same quarter one year prior, revenues rose by 18.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 168.70% and other important driving factors, this stock has surged by 43.18% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SPR should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Aerospace & Defense industry. The net income increased by 168.5% when compared to the same quarter one year prior, rising from -$209.40 million to $143.40 million.
- Net operating cash flow has significantly increased by 175.54% to $164.50 million when compared to the same quarter last year. In addition, SPIRIT AEROSYSTEMS HOLDINGS has also vastly surpassed the industry average cash flow growth rate of -13.47%.
- SPIRIT AEROSYSTEMS HOLDINGS reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SPIRIT AEROSYSTEMS HOLDINGS swung to a loss, reporting -$4.40 versus $0.25 in the prior year. This year, the market expects an improvement in earnings ($3.49 versus -$4.40).
- You can view the full Spirit AeroSystems Holdings Ratings Report.