Trade-Ideas LLC identified

NCI Building Systems

(

NCS

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified NCI Building Systems as such a stock due to the following factors:

  • NCS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.9 million.
  • NCS has traded 12.6119000000000003325340003357268869876861572265625 options contracts today.
  • NCS is making at least a new 3-day high.
  • NCS has a PE ratio of 47.
  • NCS is mentioned 0.39 times per day on StockTwits.
  • NCS has not yet been mentioned on StockTwits today.
  • NCS is currently in the upper 20% of its 1-year range.
  • NCS is in the upper 35% of its 20-day range.
  • NCS is in the upper 45% of its 5-day range.
  • NCS is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on NCS:

NCI Building Systems, Inc., together with its subsidiaries, designs, engineers, manufactures, and markets metal products for the nonresidential construction industry in North America. It operates in three segments: Engineered Building Systems, Metal Components, and Metal Coil Coating. NCS has a PE ratio of 47. Currently there are 3 analysts that rate NCI Building Systems a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for NCI Building Systems has been 273,400 shares per day over the past 30 days. NCI Building Systems has a market cap of $1.1 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.65 and a short float of 2% with 2.56 days to cover. Shares are up 19.2% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates NCI Building Systems as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and poor profit margins.

Highlights from the ratings report include:

  • NCS's revenue growth has slightly outpaced the industry average of 9.7%. Since the same quarter one year prior, revenues rose by 14.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • NCI BUILDING SYSTEMS INC has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, NCI BUILDING SYSTEMS INC increased its bottom line by earning $0.25 versus $0.14 in the prior year. This year, the market expects an improvement in earnings ($0.62 versus $0.25).
  • Despite the current debt-to-equity ratio of 1.58, it is still below the industry average, suggesting that this level of debt is acceptable within the Building Products industry. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.84 is weak.
  • This stock has managed to decline in share value by 4.71% over the past twelve months. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • Net operating cash flow has significantly decreased to -$4.20 million or 89.95% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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