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.
Trade-Ideas LLC identified
) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Masco as such a stock due to the following factors:
- MAS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $136.2 million.
- MAS has traded 5.3 million shares today.
- MAS is trading at 4.51 times the normal volume for the stock at this time of day.
- MAS crossed above its 200-day simple moving average.
'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. 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 on. 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 MAS:
Masco Corporation manufactures, distributes, and installs home improvement and building products worldwide. The stock currently has a dividend yield of 1.5%. MAS has a PE ratio of 1. Currently there are 7 analysts that rate Masco a buy, no analysts rate it a sell, and 8 rate it a hold.
The average volume for Masco has been 4.2 million shares per day over the past 30 days. Masco has a market cap of $8.1 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.54 and a short float of 3.4% with 2.15 days to cover. Shares are down 8.1% year-to-date as of the close of trading on Monday.
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rates Masco as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, solid stock price performance and good cash flow from operations. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- MAS's revenue growth has slightly outpaced the industry average of 0.9%. Since the same quarter one year prior, revenues slightly increased by 2.7%. 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.
- Compared to its closing price of one year ago, MAS's share price has jumped by 27.27%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MAS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Building Products industry and the overall market, MASCO CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has increased to -$152.00 million or 37.70% when compared to the same quarter last year. Despite an increase in cash flow of 37.70%, MASCO CORP is still growing at a significantly lower rate than the industry average of 143.07%.
- You can view the full Masco Ratings Report.