Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified American Vanguard as such a stock due to the following factors:
- AVD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.2 million.
- AVD has traded 79.731300000000004501998773775994777679443359375 options contracts today.
- AVD is making at least a new 3-day high.
- AVD has a PE ratio of 127.
- AVD is mentioned 0.26 times per day on StockTwits.
- AVD has not yet been mentioned on StockTwits today.
- AVD is currently in the upper 20% of its 1-year range.
- AVD is in the upper 35% of its 20-day range.
- AVD is in the upper 45% of its 5-day range.
- AVD is currently trading above yesterday's high.
'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.
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More details on AVD:
American Vanguard Corporation, through its subsidiaries, develops, manufactures, and markets specialty chemicals for agricultural, commercial, and consumer uses in the United States and internationally. The stock currently has a dividend yield of 0.6%. AVD has a PE ratio of 127. Currently there are 2 analysts that rate American Vanguard a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for American Vanguard has been 254,800 shares per day over the past 30 days. American Vanguard has a market cap of $370.4 million and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.13 and a short float of 10.7% with 13.35 days to cover. Shares are up 9.3% year-to-date as of the close of trading on Thursday.
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rates American Vanguard as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and relatively poor performance when compared with the S&P 500 during the past year.
Highlights from the ratings report include:
- The current debt-to-equity ratio, 0.33, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.04, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has significantly increased by 147.36% to $19.84 million when compared to the same quarter last year. In addition, AMERICAN VANGUARD CORP has also vastly surpassed the industry average cash flow growth rate of -94.32%.
- 42.97% is the gross profit margin for AMERICAN VANGUARD CORP which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, AVD's net profit margin of 0.07% significantly trails the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Chemicals industry. The net income has significantly decreased by 97.6% when compared to the same quarter one year ago, falling from $2.16 million to $0.05 million.
- 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 Chemicals industry and the overall market, AMERICAN VANGUARD CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full American Vanguard Ratings Report.