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Trade-Ideas LLC identified
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Spirit AeroSystems Holdings as such a stock due to the following factors:
- SPR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $51.5 million.
- SPR has traded 100,822 shares today.
- SPR is trading at 3.40 times the normal volume for the stock at this time of day.
- SPR is trading at a new high 3.05% 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 SPR:
Spirit AeroSystems Holdings, Inc., through its subsidiaries, operates as a non-original equipment manufacturer (OEM) that designs and manufactures commercial aerostructures worldwide. It operates in three segments: Fuselage Systems, Propulsion Systems, and Wing Systems. Currently there are 11 analysts that rate Spirit AeroSystems Holdings a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Spirit AeroSystems Holdings has been 1.2 million shares per day over the past 30 days. Spirit AeroSystems has a market cap of $6.3 billion and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 1.74 and a short float of 4.9% with 4.67 days to cover. Shares are up 3% year-to-date as of the close of trading on Tuesday.
rates Spirit AeroSystems Holdings as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and poor profit margins.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 1.9%. Since the same quarter one year prior, revenues rose by 12.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
- SPIRIT AEROSYSTEMS HOLDINGS 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, SPIRIT AEROSYSTEMS HOLDINGS swung to a loss, reporting -$4.40 versus $0.25 in the prior year. This year, the market expects an improvement in earnings ($3.98 versus -$4.40).
- Net operating cash flow has decreased to $118.80 million or 35.78% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Aerospace & Defense industry and the overall market, SPIRIT AEROSYSTEMS HOLDINGS's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Spirit AeroSystems Holdings Ratings Report.