Trade-Ideas LLC identified
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Altria Group as such a stock due to the following factors:
- MO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $351.3 million.
- MO has traded 753,534 shares today.
- MO traded in a range 236.8% of the normal price range with a price range of $1.70.
- MO traded below its daily resistance level (quality: 32 days, meaning that the stock is crossing a resistance level set by the last 32 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on MO:
Altria Group, Inc., through its subsidiaries, manufactures and sells cigarettes, smokeless products, and wine in the United States. The stock currently has a dividend yield of 3.3%. MO has a PE ratio of 25. Currently there are 5 analysts that rate Altria Group a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Altria Group has been 6.0 million shares per day over the past 30 days. Altria Group has a market cap of $134.6 billion and is part of the consumer goods sector and tobacco industry. The stock has a beta of 0.66 and a short float of 0.6% with 2.55 days to cover. Shares are up 16.7% year-to-date as of the close of trading on Tuesday.
rates Altria Group as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, growth in earnings per share, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 7.7%. Since the same quarter one year prior, revenues slightly increased by 6.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- ALTRIA GROUP INC has improved earnings per share by 19.2% 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, ALTRIA GROUP INC increased its bottom line by earning $2.68 versus $2.57 in the prior year. This year, the market expects an improvement in earnings ($3.06 versus $2.68).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Tobacco industry and the overall market, ALTRIA GROUP INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has slightly increased to $2,689.00 million or 7.64% when compared to the same quarter last year. In addition, ALTRIA GROUP INC has also vastly surpassed the industry average cash flow growth rate of -63.87%.
- The gross profit margin for ALTRIA GROUP INC is rather high; currently it is at 59.60%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 26.86% trails the industry average.
- You can view the full Altria Group Ratings Report.