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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 KapStone Paper And Packaging as such a stock due to the following factors:
- KS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $28.7 million.
- KS has traded 594,014 shares today.
- KS traded in a range 239% of the normal price range with a price range of $2.79.
- KS traded above its daily resistance level (quality: 47 days, meaning that the stock is crossing a resistance level set by the last 47 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 KS:
KapStone Paper and Packaging Corporation produces and sells containerboard, corrugated products, and specialty paper products in the United States and internationally. KS has a PE ratio of 16.5. Currently there are 5 analysts that rate KapStone Paper And Packaging a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for KapStone Paper And Packaging has been 1.1 million shares per day over the past 30 days. KapStone Paper And Packaging has a market cap of $2.8 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.69 and a short float of 3.6% with 2.90 days to cover. Shares are up 4.4% year-to-date as of the close of trading on Wednesday.
rates KapStone Paper And Packaging as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, good cash flow from operations, solid stock price performance and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- KS's very impressive revenue growth greatly exceeded the industry average of 0.7%. Since the same quarter one year prior, revenues leaped by 80.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. 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.
- KAPSTONE PAPER & PACKAGING 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, KAPSTONE PAPER & PACKAGING increased its bottom line by earning $1.32 versus $0.66 in the prior year. This year, the market expects an improvement in earnings ($2.15 versus $1.32).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Paper & Forest Products industry. The net income increased by 145.1% when compared to the same quarter one year prior, rising from $20.99 million to $51.46 million.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Paper & Forest Products industry and the overall market, KAPSTONE PAPER & PACKAGING's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- You can view the full KapStone Paper And Packaging Ratings Report.