Trade-Ideas LLC identified

Summit Materials

(

SUM

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Summit Materials as such a stock due to the following factors:

  • SUM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.9 million.
  • SUM traded 68,450 shares today in the pre-market hours as of 8:56 AM, representing 11% of its average daily volume.

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More details on SUM:

Summit Materials, Inc., through its subsidiaries, produces and sells construction materials and related downstream products. SUM has a PE ratio of 32. Currently there are 7 analysts that rate Summit Materials a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Summit Materials has been 1.1 million shares per day over the past 30 days. Summit has a market cap of $2.5 billion and is part of the industrial goods sector and materials & construction industry. Shares are up 8.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Summit Materials as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, poor profit margins and generally high debt management risk.

Highlights from the ratings report include:

  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, SUM has underperformed the S&P 500 Index, declining 19.24% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
  • The gross profit margin for SUMMIT MATERIALS INC is rather low; currently it is at 22.55%. Regardless of SUM's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, SUM's net profit margin of -18.58% significantly underperformed when compared to the industry average.
  • The debt-to-equity ratio is very high at 2.52 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, SUM's quick ratio is somewhat strong at 1.09, demonstrating the ability to handle short-term liquidity needs.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Construction Materials industry average, but is greater than that of the S&P 500. The net income increased by 45.5% when compared to the same quarter one year prior, rising from -$77.86 million to -$42.46 million.
  • SUMMIT MATERIALS INC's earnings per share declined by 12.2% 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, SUMMIT MATERIALS INC increased its bottom line by earning $0.41 versus $0.13 in the prior year. This year, the market expects an improvement in earnings ($1.35 versus $0.41).

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