Trade-Ideas LLC identified

AZZ

(

AZZ

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified AZZ as such a stock due to the following factors:

  • AZZ has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.3 million.
  • AZZ has traded 283,033 shares today.
  • AZZ is trading at 5.10 times the normal volume for the stock at this time of day.
  • AZZ is trading at a new low 3.02% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on AZZ:

TheStreet Recommends

AZZ incorporated provides galvanizing services, welding solutions, specialty electrical equipment, and engineered services to the power generation, transmission, distribution, and industrial markets. The company operates through two segments, Energy and Galvanizing Services. The stock currently has a dividend yield of 1.3%. AZZ has a PE ratio of 17. Currently there is 1 analyst that rates AZZ a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for AZZ has been 153,800 shares per day over the past 30 days. AZZ has a market cap of $1.2 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.59 and a short float of 2.9% with 5.46 days to cover. Shares are up 5.2% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates AZZ as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 14.5%. Since the same quarter one year prior, revenues slightly increased by 5.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 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. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • AZZ INC has improved earnings per share by 32.8% 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, AZZ INC increased its bottom line by earning $2.51 versus $2.33 in the prior year. This year, the market expects an improvement in earnings ($3.06 versus $2.51).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electrical Equipment industry. The net income increased by 33.5% when compared to the same quarter one year prior, rising from $14.93 million to $19.92 million.

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