Trade-Ideas: Zoltek Companies (ZOLT) Is Today's Pre-Market Mover With Heavy Volume Stock

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 Zoltek Companies ( ZOLT) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Zoltek Companies as such a stock due to the following factors:

  • ZOLT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.1 million.
  • ZOLT traded 201,400 shares today in the pre-market hours as of 8:23 AM, representing 23.5% of its average daily volume.

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More details on ZOLT:

Zoltek Companies, Inc., through its subsidiaries, develops, manufactures, and markets carbon fibers and technical fibers primarily in the United States, Europe, and Asia. ZOLT has a PE ratio of 57.4. Currently there are no analysts that rate Zoltek Companies a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Zoltek Companies has been 344,600 shares per day over the past 30 days. Zoltek Companies has a market cap of $553.0 million and is part of the industrial goods sector and industrial industry. The stock has a beta of 2.53 and a short float of 18.2% with 5.74 days to cover. Shares are up 107.5% year to date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Zoltek Companies as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • ZOLT's debt-to-equity ratio is very low at 0.08 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.04, which clearly demonstrates the ability to cover short-term cash needs.
  • 35.65% is the gross profit margin for ZOLTEK COS INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -2.95% is in-line with the industry average.
  • Compared to its closing price of one year ago, ZOLT's share price has jumped by 66.38%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • The revenue fell significantly faster than the industry average of 2.7%. Since the same quarter one year prior, revenues fell by 37.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • ZOLTEK COS INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, ZOLTEK COS INC turned its bottom line around by earning $0.66 versus -$0.10 in the prior year. For the next year, the market is expecting a contraction of 55.3% in earnings ($0.30 versus $0.66).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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