Trade-Ideas LLC identified

Vulcan Materials

(

VMC

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

  • VMC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $106.6 million.
  • VMC has traded 873.3429999999999608917278237640857696533203125 options contracts today.
  • VMC is making at least a new 3-day high.
  • VMC has a PE ratio of 105.
  • VMC is mentioned 0.97 times per day on StockTwits.
  • VMC has not yet been mentioned on StockTwits today.
  • VMC is currently in the upper 20% of its 1-year range.
  • VMC is in the upper 35% of its 20-day range.
  • VMC is in the upper 45% of its 5-day range.
  • VMC 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 VMC:

Vulcan Materials Company produces and sells construction aggregates, asphalt mix, and ready-mixed concrete primarily in the United States. It operates through four segments: Aggregates, Asphalt Mix, Concrete, and Calcium. The stock currently has a dividend yield of 0.4%. VMC has a PE ratio of 105. Currently there are 7 analysts that rate Vulcan Materials a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Vulcan Materials has been 1.4 million shares per day over the past 30 days. Vulcan has a market cap of $12.2 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 0.81 and a short float of 2.1% with 2.13 days to cover. Shares are up 44.3% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Vulcan Materials as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 4.1%. Since the same quarter one year prior, revenues rose by 13.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • VULCAN MATERIALS CO has improved earnings per share by 5.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, VULCAN MATERIALS CO increased its bottom line by earning $1.56 versus $0.16 in the prior year. This year, the market expects an improvement in earnings ($2.11 versus $1.56).
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Construction Materials industry average. The net income increased by 4.8% when compared to the same quarter one year prior, going from $45.97 million to $48.16 million.
  • Net operating cash flow has significantly increased by 63.18% to $45.48 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 39.39%.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 57.21% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.

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