Trade-Ideas LLC identified

Worthington Industries

(

WOR

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

  • WOR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.7 million.
  • WOR has traded 66,301 shares today.
  • WOR is trading at 3.85 times the normal volume for the stock at this time of day.
  • WOR is trading at a new high 4.03% 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 WOR:

Worthington Industries, Inc., a metals manufacturing company, focuses on value-added steel processing and manufactured metal products in the United States, Europe, Mexico, Canada, and internationally. It operates through three segments: Steel Processing, Pressure Cylinders, and Engineered Cabs. The stock currently has a dividend yield of 2.1%. WOR has a PE ratio of 19. Currently there are no analysts that rate Worthington Industries a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Worthington Industries has been 360,300 shares per day over the past 30 days. Worthington has a market cap of $2.3 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 1.16 and a short float of 5.4% with 3.87 days to cover. Shares are up 26% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Worthington Industries as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, notable return on equity, good cash flow from operations and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • Powered by its strong earnings growth of 217.94% and other important driving factors, this stock has surged by 39.73% 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, WOR 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 Metals & Mining industry. The net income increased by 215.0% when compared to the same quarter one year prior, rising from -$25.71 million to $29.58 million.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to the other companies in the Metals & Mining industry and the overall market, WORTHINGTON INDUSTRIES's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • Net operating cash flow has increased to $105.78 million or 26.27% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 15.65%.
  • WORTHINGTON INDUSTRIES 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, WORTHINGTON INDUSTRIES reported lower earnings of $1.11 versus $2.12 in the prior year. This year, the market expects an improvement in earnings ($2.25 versus $1.11).

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