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 strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified MeadWestvaco as such a stock due to the following factors:
- MWV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $61.2 million.
- MWV has traded 1.8 million shares today.
- MWV is trading at 51.26 times the normal volume for the stock at this time of day.
- MWV is trading at a new high 19.01% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 MWV:
MeadWestvaco Corporation provides packaging solutions to healthcare, beauty and personal care, food, beverage, home and garden, tobacco, and agricultural industries worldwide. The stock currently has a dividend yield of 2.2%. MWV has a PE ratio of 19.2. Currently there are 3 analysts that rate MeadWestvaco a buy, 1 analyst rates it a sell, and 2 rate it a hold.
The average volume for MeadWestvaco has been 937,700 shares per day over the past 30 days. MeadWestvaco has a market cap of $7.6 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.68 and a short float of 2.2% with 2.32 days to cover. Shares are up 1.5% year-to-date as of the close of trading on Friday.
rates MeadWestvaco as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- 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. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- MEADWESTVACO CORP 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 two years. We feel that this trend should continue. During the past fiscal year, MEADWESTVACO CORP increased its bottom line by earning $1.78 versus $1.21 in the prior year. This year, the market expects an improvement in earnings ($1.84 versus $1.78).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Containers & Packaging industry average. The net income increased by 32.5% when compared to the same quarter one year prior, rising from $80.00 million to $106.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 9.6%. Since the same quarter one year prior, revenues slightly increased by 6.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.54, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.11, which illustrates the ability to avoid short-term cash problems.
- You can view the full MeadWestvaco Ratings Report.