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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified

AptarGroup

(

ATR

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

  • ATR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.3 million.
  • ATR has traded 52,829 shares today.
  • ATR is trading at 7.03 times the normal volume for the stock at this time of day.
  • ATR is trading at a new high 3.02% 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 ATR:

TheStreet Recommends

AptarGroup, Inc. develops, manufactures, and sells consumer product dispensing systems in North America, Europe, Asia, and Latin America. The company operates in three segments: Beauty + Home, Pharma, and Food + Beverage. The stock currently has a dividend yield of 1.8%. ATR has a PE ratio of 23.0. Currently there are 2 analysts that rate AptarGroup a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for AptarGroup has been 250,400 shares per day over the past 30 days. AptarGroup has a market cap of $4.1 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.15 and a short float of 2.5% with 4.32 days to cover. Shares are down 4.5% year-to-date as of the close of trading on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates AptarGroup as a

buy

. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • APTARGROUP INC has improved earnings per share by 8.9% 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 year. We feel that this trend should continue. During the past fiscal year, APTARGROUP INC increased its bottom line by earning $2.53 versus $2.39 in the prior year. This year, the market expects an improvement in earnings ($2.85 versus $2.53).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the Containers & Packaging industry average, but is less than that of the S&P 500. The net income increased by 7.3% when compared to the same quarter one year prior, going from $45.26 million to $48.60 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 6.2%. Since the same quarter one year prior, revenues slightly increased by 4.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.43, 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 1.29, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has slightly increased to $90.33 million or 6.38% when compared to the same quarter last year. In addition, APTARGROUP INC has also modestly surpassed the industry average cash flow growth rate of -1.03%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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