Trade-Ideas LLC identified

KapStone Paper And Packaging

(

KS

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified KapStone Paper And Packaging as such a stock due to the following factors:

  • KS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.1 million.
  • KS has traded 330,389 shares today.
  • KS is down 3% today.
  • KS was up 7.7% yesterday.

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More details on KS:

KapStone Paper and Packaging Corporation manufactures and sells containerboards, corrugated products, and specialty paper products in the United States and internationally. The company operates in two segments, Paper and Packaging, and Distribution. The stock currently has a dividend yield of 3.1%. KS has a PE ratio of 12. Currently there are 5 analysts that rate KapStone Paper And Packaging a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for KapStone Paper And Packaging has been 1.7 million shares per day over the past 30 days. KapStone Paper And Packaging has a market cap of $1.3 billion and is part of the consumer goods sector and consumer non-durables industry. Shares are down 38.1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates KapStone Paper And Packaging as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 2.7%. Since the same quarter one year prior, revenues rose by 35.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has decreased to $85.81 million or 19.91% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Paper & Forest Products industry. The net income has significantly decreased by 65.3% when compared to the same quarter one year ago, falling from $34.10 million to $11.82 million.

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