Strong On High Volume: Rogers (ROG)
Trade-Ideas LLC identified Rogers ( ROG) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Rogers as such a stock due to the following factors:
- ROG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.1 million.
- ROG has traded 72,966 shares today.
- ROG is trading at 15.06 times the normal volume for the stock at this time of day.
- ROG is trading at a new high 11.05% 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.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in ROG with the Ticky from Trade-Ideas. See the FREE profile for ROG NOW at Trade-Ideas
More details on ROG: Rogers Corporation designs, develops, manufactures, and sells engineered materials and components worldwide. ROG has a PE ratio of 23. Currently there is 1 analyst that rates Rogers a buy, no analysts rate it a sell, and none rate it a hold. The average volume for Rogers has been 110,900 shares per day over the past 30 days. Rogers has a market cap of $1.0 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.85 and a short float of 4.1% with 7.84 days to cover. Shares are up 13.8% year-to-date as of the close of trading on Monday.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
Analysis:
rates Rogers as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and a generally disappointing performance in the stock itself. Highlights from the ratings report include:
- ROG's revenue growth has slightly outpaced the industry average of 1.0%. Since the same quarter one year prior, revenues slightly increased by 3.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
- The current debt-to-equity ratio, 0.32, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 3.97, which clearly demonstrates the ability to cover short-term cash needs.
- 40.18% is the gross profit margin for ROGERS CORP which we consider to be strong. Regardless of ROG's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 4.30% trails the industry average.
- ROG's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 26.21%, which is also worse than the performance of the S&P 500 Index. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, ROGERS CORP's return on equity is below that of both the industry average and the S&P 500.
- You can view the full Rogers Ratings Report.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
