Strong On High Relative Volume: Post Holdings (POST) - TheStreet

Trade-Ideas LLC identified

Post Holdings

(

POST

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

  • POST has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $39.0 million.
  • POST has traded 97,217 shares today.
  • POST is trading at 7.14 times the normal volume for the stock at this time of day.
  • POST is trading at a new high 6.03% 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 POST:

Post Holdings, Inc. manufactures, markets, and sells refrigerated, active nutrition, and private label food products in the United States and Canada. The company operates through five segments: Post Foods, Michael Foods, Active Nutrition, Private Brands, and Attune Foods. Currently there are 5 analysts that rate Post Holdings a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Post Holdings has been 834,800 shares per day over the past 30 days. Post has a market cap of $3.5 billion and is part of the consumer goods sector and food & beverage industry. Shares are up 48% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Post Holdings as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, solid stock price performance, increase in net income and growth in earnings per share. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • POST's very impressive revenue growth greatly exceeded the industry average of 6.5%. Since the same quarter one year prior, revenues leaped by 91.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 135.86% and other important driving factors, this stock has surged by 80.47% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, POST should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food Products industry. The net income increased by 168.4% when compared to the same quarter one year prior, rising from -$35.10 million to $24.00 million.
  • Net operating cash flow has significantly increased by 84.46% to $103.30 million when compared to the same quarter last year. In addition, POST HOLDINGS INC has also vastly surpassed the industry average cash flow growth rate of -20.72%.
  • POST HOLDINGS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, POST HOLDINGS INC swung to a loss, reporting -$7.60 versus $0.29 in the prior year. This year, the market expects an improvement in earnings ($0.57 versus -$7.60).

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