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 or Stephanie Link.
Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Douglas Dynamics as such a stock due to the following factors:
- PLOW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.0 million.
- PLOW has traded 136,749 shares today.
- PLOW is trading at 15.79 times the normal volume for the stock at this time of day.
- PLOW is trading at a new low 10.01% 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 PLOW:
Douglas Dynamics, Inc. is engaged in the design, manufacture, and sale of snow and ice control equipment for light trucks in the United States and Canada. It provides snowplows, sand and salt spreaders, and related parts and accessories. The stock currently has a dividend yield of 3.9%. PLOW has a PE ratio of 14.4. Currently there are no analysts that rate Douglas Dynamics a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Douglas Dynamics has been 152,800 shares per day over the past 30 days. Douglas Dynamics has a market cap of $502.3 million and is part of the consumer goods sector and automotive industry. The stock has a beta of 1.76 and a short float of 8.9% with 9.21 days to cover. Shares are up 11% year-to-date as of the close of trading on Wednesday.
rates Douglas Dynamics as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- PLOW's very impressive revenue growth greatly exceeded the industry average of 1.3%. Since the same quarter one year prior, revenues leaped by 51.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.85, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, PLOW has a quick ratio of 1.67, which demonstrates the ability of the company to cover short-term liquidity needs.
- Powered by its strong earnings growth of 2250.00% and other important driving factors, this stock has surged by 41.28% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- DOUGLAS DYNAMICS INC reported significant earnings per share improvement 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 year. We feel that this trend should continue. During the past fiscal year, DOUGLAS DYNAMICS INC increased its bottom line by earning $0.51 versus $0.26 in the prior year. This year, the market expects an improvement in earnings ($1.60 versus $0.51).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Machinery industry. The net income increased by 1684.7% when compared to the same quarter one year prior, rising from $0.60 million to $10.76 million.
- You can view the full Douglas Dynamics Ratings Report.