Trade-Ideas LLC identified

KapStone Paper And Packaging

(

KS

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified KapStone Paper And Packaging as such a stock due to the following factors:

  • KS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.9 million.
  • KS has traded 60,221 shares today.
  • KS is trading at 2.19 times the normal volume for the stock at this time of day.
  • KS is trading at a new high 4.05% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on KS:

TheStreet Recommends

KapStone Paper and Packaging Corporation manufactures and sells containerboards, corrugated products, and specialty paper products in the United States and internationally. The company operates in two segments, Paper and Packaging, and Distribution. The stock currently has a dividend yield of 2.9%. KS has a PE ratio of 14. Currently there are 4 analysts that rate KapStone Paper And Packaging a buy, 2 analysts rate it a sell, and 3 rate it a hold.

The average volume for KapStone Paper And Packaging has been 1.3 million shares per day over the past 30 days. KapStone Paper And Packaging has a market cap of $1.3 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 3.07 and a short float of 5.2% with 5.28 days to cover. Shares are down 37.7% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates KapStone Paper And Packaging as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and generally higher debt management risk.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 0.1%. Since the same quarter one year prior, revenues rose by 35.1%. 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.
  • The gross profit margin for KAPSTONE PAPER & PACKAGING is rather low; currently it is at 18.95%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.19% trails that of the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Paper & Forest Products industry. The net income has significantly decreased by 38.0% when compared to the same quarter one year ago, falling from $26.10 million to $16.17 million.

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