Trade-Ideas LLC identified

POSCO

(

PKX

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

  • PKX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.3 million.
  • PKX has traded 394.76100000000002410160959698259830474853515625 options contracts today.
  • PKX is making at least a new 3-day high.
  • PKX has a PE ratio of 32.
  • PKX is mentioned 0.77 times per day on StockTwits.
  • PKX has not yet been mentioned on StockTwits today.
  • PKX is currently in the upper 20% of its 1-year range.
  • PKX is in the upper 35% of its 20-day range.
  • PKX is in the upper 45% of its 5-day range.
  • PKX 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 PKX:

POSCO manufactures and sells steel rolled products and plates in South Korea and internationally. The company operates through four segments: Steel, Construction, Trading, and Others. PKX has a PE ratio of 32. Currently there are 2 analysts that rate POSCO a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for POSCO has been 399,800 shares per day over the past 30 days. POSCO has a market cap of $16.7 billion and is part of the basic materials sector and metals & mining industry. Shares are up 36.2% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates POSCO as a

hold

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and poor profit margins.

Highlights from the ratings report include:

  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Metals & Mining industry average. The net income increased by 3.3% when compared to the same quarter one year prior, going from $305.66 million to $315.82 million.
  • The current debt-to-equity ratio, 0.59, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.99 is somewhat weak and could be cause for future problems.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, POSCO has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • The gross profit margin for POSCO is rather low; currently it is at 18.28%. Regardless of PKX's low profit margin, it has managed to increase from the same period last year.

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