Trade-Ideas LLC identified

Granite Construction

(

GVA

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

  • GVA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.3 million.
  • GVA has traded 32.9851000000000027512214728631079196929931640625 options contracts today.
  • GVA is making at least a new 3-day high.
  • GVA has a PE ratio of 26.
  • GVA is mentioned 0.71 times per day on StockTwits.
  • GVA has not yet been mentioned on StockTwits today.
  • GVA is currently in the upper 20% of its 1-year range.
  • GVA is in the upper 35% of its 20-day range.
  • GVA is in the upper 45% of its 5-day range.
  • GVA 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 GVA:

Granite Construction Incorporated operates as a heavy civil contractor and a construction materials producer in the United States. The company operates through Construction, Large Project Construction, and Construction Materials segments. The stock currently has a dividend yield of 1.3%. GVA has a PE ratio of 26. Currently there are 5 analysts that rate Granite Construction a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Granite Construction has been 291,900 shares per day over the past 30 days. Granite Construction has a market cap of $1.5 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.10 and a short float of 3.5% with 4.39 days to cover. Shares are down 5% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Granite Construction as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. 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 18.2%. Since the same quarter one year prior, revenues slightly increased by 6.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.31, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.33, which illustrates the ability to avoid short-term cash problems.
  • GRANITE CONSTRUCTION INC 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, GRANITE CONSTRUCTION INC increased its bottom line by earning $1.51 versus $0.62 in the prior year. This year, the market expects an improvement in earnings ($2.03 versus $1.51).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Construction & Engineering industry. The net income increased by 68.9% when compared to the same quarter one year prior, rising from $16.98 million to $28.67 million.
  • 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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