Trade-Ideas LLC identified

Advanced Drainage Systems

(

WMS

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

  • WMS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.4 million.
  • WMS is making at least a new 3-day high.
  • WMS has a PE ratio of 12.
  • WMS is mentioned 0.42 times per day on StockTwits.
  • WMS has not yet been mentioned on StockTwits today.
  • WMS is currently in the upper 20% of its 1-year range.
  • WMS is in the upper 35% of its 20-day range.
  • WMS is in the upper 45% of its 5-day range.
  • WMS 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 WMS:

Advanced Drainage Systems, Inc. designs, manufactures, and markets thermoplastic corrugated pipes and related water management products for non-residential, residential, agriculture, and infrastructure applications in the United States and internationally. The stock currently has a dividend yield of 0.6%. WMS has a PE ratio of 12. Currently there are 3 analysts that rate Advanced Drainage Systems a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Advanced Drainage Systems has been 275,900 shares per day over the past 30 days. Advanced Drainage Systems has a market cap of $1.7 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 2.05 and a short float of 11.4% with 15.67 days to cover. Shares are up 36.1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Advanced Drainage Systems as a

hold

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from the ratings report include:

  • Powered by its strong earnings growth of 42.42% and other important driving factors, this stock has surged by 47.46% over the past year, outperforming the rise in the S&P 500 Index during the same period.
  • The revenue growth came in higher than the industry average of 3.9%. Since the same quarter one year prior, revenues rose by 14.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • In comparison to the other companies in the Building Products industry and the overall market, ADVANCED DRAINAGE SYSTEMS's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Building Products industry average, but is greater than that of the S&P 500. The net income increased by 18.1% when compared to the same quarter one year prior, going from -$12.17 million to -$9.96 million.
  • The gross profit margin for ADVANCED DRAINAGE SYSTEMS is rather low; currently it is at 17.04%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -4.82% is significantly below that of the industry average.

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