Strong On High Volume: Patrick Industries (PATK) - TheStreet

Trade-Ideas LLC identified

Patrick Industries

(

PATK

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

  • PATK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.5 million.
  • PATK has traded 52,911 shares today.
  • PATK is trading at 3.38 times the normal volume for the stock at this time of day.
  • PATK is trading at a new high 3.15% 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 PATK:

Patrick Industries, Inc. manufactures and distributes building products and materials for the recreational vehicle, manufactured housing, and industrial markets in ten states. PATK has a PE ratio of 16. Currently there is 1 analyst that rates Patrick Industries a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Patrick Industries has been 86,500 shares per day over the past 30 days. Patrick has a market cap of $579.6 million and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 0.99 and a short float of 2.3% with 2.30 days to cover. Shares are up 28.9% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Patrick Industries as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. 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 1.1%. Since the same quarter one year prior, revenues rose by 24.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 36.05% and other important driving factors, this stock has surged by 40.20% 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, PATK should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • PATRICK INDUSTRIES INC has improved earnings per share by 36.0% 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, PATRICK INDUSTRIES INC increased its bottom line by earning $1.91 versus $1.49 in the prior year. This year, the market expects an improvement in earnings ($2.42 versus $1.91).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Building Products industry average. The net income increased by 30.8% when compared to the same quarter one year prior, rising from $9.23 million to $12.07 million.

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