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Trade-Ideas LLC identified




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

  • HW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.9 million.
  • HW has traded 310.35800000000000409272615797817707061767578125 options contracts today.
  • HW is making at least a new 3-day high.
  • HW has a PE ratio of 154.
  • HW is mentioned 0.55 times per day on StockTwits.
  • HW has not yet been mentioned on StockTwits today.
  • HW is currently in the upper 20% of its 1-year range.
  • HW is in the upper 35% of its 20-day range.
  • HW is in the upper 45% of its 5-day range.
  • HW 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 HW:

Headwaters Incorporated, a building products company, provides products and services in the light and heavy building materials sectors primarily in the United States and Canada. It operates through three segments: Light Building Products, Heavy Construction Materials, and Energy Technology. HW has a PE ratio of 154. Currently there are 5 analysts that rate Headwaters a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Headwaters has been 688,900 shares per day over the past 30 days. Headwaters 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 1.47 and a short float of 4.9% with 4.34 days to cover. Shares are up 32% year-to-date as of the close of trading on Tuesday.

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TheStreet Quant Ratings

rates Headwaters as a


. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 4.1%. Since the same quarter one year prior, revenues slightly increased by 8.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • HEADWATERS 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, HEADWATERS INC increased its bottom line by earning $0.21 versus $0.11 in the prior year. This year, the market expects an improvement in earnings ($0.64 versus $0.21).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Construction Materials industry. The net income increased by 120.5% when compared to the same quarter one year prior, rising from $10.35 million to $22.82 million.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to the other companies in the Construction Materials industry and the overall market, HEADWATERS INC's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • 35.41% is the gross profit margin for HEADWATERS INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 9.37% is above that of the industry average.

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