Trade-Ideas LLC identified

Precision Castparts

(

PCP

) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Precision Castparts as such a stock due to the following factors:

  • PCP has 17x the normal benchmarked social activity for this time of the day compared to its average of 0.71 mentions/day.
  • PCP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $188.9 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on PCP:

Precision Castparts Corp. manufactures and sells metal components and products to the aerospace, power, and general industrial and other markets worldwide. The company operates through three segments: Investment Cast Products, Forged Products, and Airframe Products. The stock currently has a dividend yield of 0.1%. PCP has a PE ratio of 24. Currently there are 2 analysts that rate Precision Castparts a buy, no analysts rate it a sell, and 14 rate it a hold.

The average volume for Precision Castparts has been 1.1 million shares per day over the past 30 days. Precision Castparts has a market cap of $31.9 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 0.45 and a short float of 1.9% with 2.78 days to cover. Shares are down 3.8% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Precision Castparts as a

buy

. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • The current debt-to-equity ratio, 0.44, 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 1.14, which illustrates the ability to avoid short-term cash problems.
  • PRECISION CASTPARTS CORP's earnings per share declined by 23.1% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, PRECISION CASTPARTS CORP reported lower earnings of $10.71 versus $11.95 in the prior year. This year, the market expects an improvement in earnings ($12.22 versus $10.71).
  • PCP, with its decline in revenue, underperformed when compared the industry average of 1.7%. Since the same quarter one year prior, revenues slightly dropped by 9.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • After a year of stock price fluctuations, the net result is that PCP's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Despite the stock's decline during the last year, it is still somewhat more expensive (in proportion to its earnings over the last year) than most other stocks in its industry. We feel, however, that other strengths this company displays offset this slight negative.
  • The gross profit margin for PRECISION CASTPARTS CORP is currently lower than what is desirable, coming in at 34.94%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 14.99% is above that of the industry average.

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