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Trade-Ideas LLC identified

Astec Industries

(

ASTE

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Astec Industries as such a stock due to the following factors:

  • ASTE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.5 million.
  • ASTE has traded 57.1193999999999988403942552395164966583251953125 options contracts today.
  • ASTE is making at least a new 3-day high.
  • ASTE has a PE ratio of 32.
  • ASTE is mentioned 0.90 times per day on StockTwits.
  • ASTE has not yet been mentioned on StockTwits today.
  • ASTE is currently in the upper 20% of its 1-year range.
  • ASTE is in the upper 35% of its 20-day range.
  • ASTE is in the upper 45% of its 5-day range.
  • ASTE is currently trading above yesterday's high.

TheStreet Recommends

'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 ASTE:

Astec Industries, Inc. designs, engineers, manufactures, and markets equipment and components primarily for the road building, aggregate processing, geothermal, water, oil and gas, and wood processing industries in the United States and internationally. The stock currently has a dividend yield of 0.9%. ASTE has a PE ratio of 32. Currently there are 6 analysts that rate Astec Industries a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Astec Industries has been 153,900 shares per day over the past 30 days. Astec has a market cap of $1.0 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.01 and a short float of 4.1% with 8.70 days to cover. Shares are up 12% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Astec Industries as a

buy

. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • Net operating cash flow has increased to $8.72 million or 44.93% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -2.03%.
  • ASTE's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.91 is somewhat weak and could be cause for future problems.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 20.2%. Since the same quarter one year prior, revenues fell by 10.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • ASTEC INDUSTRIES INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, ASTEC INDUSTRIES INC reported lower earnings of $1.42 versus $1.49 in the prior year. This year, the market expects an improvement in earnings ($2.15 versus $1.42).
  • 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, despite the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.

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