Trade-Ideas LLC identified
) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Carpenter Technology as such a stock due to the following factors:
- CRS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.3 million.
- CRS has traded 97,976 shares today.
- CRS traded in a range 223.7% of the normal price range with a price range of $2.86.
- CRS traded above its daily resistance level (quality: 34 days, meaning that the stock is crossing a resistance level set by the last 34 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
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More details on CRS:
Carpenter Technology Corporation manufactures, fabricates, and distributes specialty metals worldwide. It operates through two segments: Specialty Alloys Operations and Performance Engineered Products. The stock currently has a dividend yield of 2.8%. CRS has a PE ratio of 25. Currently there are 2 analysts that rate Carpenter Technology a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Carpenter Technology has been 543,600 shares per day over the past 30 days. Carpenter Technology has a market cap of $1.3 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.89 and a short float of 6.3% with 4.53 days to cover. Shares are down 11.7% year-to-date as of the close of trading on Wednesday.
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rates Carpenter Technology as a
. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and poor profit margins.
Highlights from the ratings report include:
- Net operating cash flow has significantly increased by 176.66% to $41.50 million when compared to the same quarter last year. In addition, CARPENTER TECHNOLOGY CORP has also vastly surpassed the industry average cash flow growth rate of -24.65%.
- The current debt-to-equity ratio, 0.48, 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 0.95 is somewhat weak and could be cause for future problems.
- Despite the weak revenue results, CRS has outperformed against the industry average of 46.8%. Since the same quarter one year prior, revenues fell by 17.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- 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, CARPENTER TECHNOLOGY CORP 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 CARPENTER TECHNOLOGY CORP is rather low; currently it is at 21.62%. Regardless of CRS's low profit margin, it has managed to increase from the same period last year.
- You can view the full Carpenter Technology Ratings Report.