Trade-Ideas LLC identified

Deltic Timber

(

DEL

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

  • DEL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.7 million.
  • DEL has traded 0.432800000000000018030021919912542216479778289794921875 options contracts today.
  • DEL is making at least a new 3-day high.
  • DEL has a PE ratio of 252.
  • DEL is mentioned 0.35 times per day on StockTwits.
  • DEL has not yet been mentioned on StockTwits today.
  • DEL is currently in the upper 20% of its 1-year range.
  • DEL is in the upper 35% of its 20-day range.
  • DEL is in the upper 45% of its 5-day range.
  • DEL 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 DEL:

Deltic Timber Corporation, a natural resources company, engages in the growing and harvesting of timber; and manufacturing and marketing of lumber and medium density fiberboards (MDF) in the United States. The stock currently has a dividend yield of 0.6%. DEL has a PE ratio of 252.

The average volume for Deltic Timber has been 30,800 shares per day over the past 30 days. Deltic Timber has a market cap of $827.7 million and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 0.78 and a short float of 8.6% with 14.74 days to cover. Shares are up 15% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Deltic Timber as a

hold

. Among the primary strengths of the company is its revenue growth. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and generally higher debt management risk.

Highlights from the ratings report include:

  • DEL's revenue growth has slightly outpaced the industry average of 0.5%. Since the same quarter one year prior, revenues slightly increased by 4.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • After a year of stock price fluctuations, the net result is that DEL's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
  • DELTIC TIMBER CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, DELTIC TIMBER CORP reported lower earnings of $0.21 versus $1.56 in the prior year.
  • The gross profit margin for DELTIC TIMBER CORP is currently lower than what is desirable, coming in at 27.88%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.78% trails that of the industry average.
  • Net operating cash flow has significantly decreased to $2.78 million or 69.88% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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