Trade-Ideas: Barnes Group (B) Is Today's New Lifetime High 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 Barnes Group ( B) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Barnes Group as such a stock due to the following factors:

  • B has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.6 million.
  • B has traded 211,858 shares today.
  • B is trading at a new lifetime high.

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More details on B:

Barnes Group Inc. operates as an aerospace and industrial manufacturing and service provider serving a range of end markets and customers worldwide. The company operates in three segments: Aerospace, Industrial, and Distribution. The stock currently has a dividend yield of 1.3%. B has a PE ratio of 22.4. Currently there are 3 analysts that rate Barnes Group a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Barnes Group has been 316,300 shares per day over the past 30 days. Barnes Group has a market cap of $1.8 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.68 and a short float of 3.9% with 5.80 days to cover. Shares are up 55.3% year to date as of the close of trading on Friday.

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 Barnes Group as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 17.8%. Since the same quarter one year prior, revenues rose by 24.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • B's debt-to-equity ratio is very low at 0.25 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.10, which illustrates the ability to avoid short-term cash problems.
  • Compared to its closing price of one year ago, B's share price has jumped by 47.90%, exceeding the performance of the broader market during that same time frame. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • 39.12% is the gross profit margin for BARNES GROUP INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 78.28% significantly outperformed against the industry average.

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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