Trade-Ideas LLC identified

PGT

(

PGTI

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

  • PGTI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.0 million.
  • PGTI has traded 52,683 shares today.
  • PGTI is trading at 3.22 times the normal volume for the stock at this time of day.
  • PGTI is trading at a new low 3.08% 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 PGTI:

PGT, Inc. manufactures and supplies residential impact-resistant windows and doors in the Southeastern United States, the Gulf Coast, Coastal mid-Atlantic, the Caribbean, Central America, and Canada. PGTI has a PE ratio of 24. Currently there are 6 analysts that rate PGT a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for PGT has been 317,400 shares per day over the past 30 days. PGT has a market cap of $524.5 million and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.26 and a short float of 5.5% with 7.13 days to cover. Shares are down 17.4% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates PGT as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, reasonable valuation levels, good cash flow from operations and compelling growth in net income. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 5.8%. Since the same quarter one year prior, revenues rose by 30.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving 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.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Building Products industry. The net income increased by 172.2% when compared to the same quarter one year prior, rising from $2.33 million to $6.35 million.
  • Net operating cash flow has increased to $11.74 million or 33.37% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 18.50%.

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