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 and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Vulcan Materials as such a stock due to the following factors:
- VMC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $82.0 million.
- VMC is making at least a new 3-day high.
- VMC has a PE ratio of 52.0.
- VMC is mentioned 0.90 times per day on StockTwits.
- VMC has not yet been mentioned on StockTwits today.
- VMC is currently in the upper 20% of its 1-year range.
- VMC is in the upper 35% of its 20-day range.
- VMC is in the upper 45% of its 5-day range.
- VMC 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 VMC:
Vulcan Materials Company produces and sells construction aggregates, asphalt mix, ready-mixed concrete, and cement primarily in the United States. The company's Aggregates segment offers crushed stone, sand and gravel, sand, and other aggregates, as well as related products and services. The stock currently has a dividend yield of 0.3%. VMC has a PE ratio of 52.0. Currently there are 4 analysts that rate Vulcan Materials a buy, 2 analysts rate it a sell, and 5 rate it a hold.
The average volume for Vulcan Materials has been 1.1 million shares per day over the past 30 days. Vulcan has a market cap of $9.2 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.45 and a short float of 3.7% with 3.70 days to cover. Shares are up 6.5% year-to-date as of the close of trading on Wednesday.
rates Vulcan Materials 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, revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 13.8%. Since the same quarter one year prior, revenues slightly increased by 7.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. 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.
- VULCAN MATERIALS CO 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, VULCAN MATERIALS CO turned its bottom line around by earning $0.16 versus -$0.42 in the prior year. This year, the market expects an improvement in earnings ($0.89 versus $0.16).
- Despite currently having a low debt-to-equity ratio of 0.48, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that VMC's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.57 is high and demonstrates strong liquidity.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Construction Materials industry and the overall market on the basis of return on equity, VULCAN MATERIALS CO underperformed against that of the industry average and is significantly less than that of the S&P 500.
- You can view the full Vulcan Materials Ratings Report.