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

  • CFX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $47.6 million.
  • CFX traded 157,940 shares today in the pre-market hours as of 8:37 AM, representing 23% of its average daily volume.

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More details on CFX:

Colfax Corporation, a diversified industrial manufacturing and engineering company, provides gas- and fluid-handling and fabrication technology products and services to commercial and governmental customers worldwide. CFX has a PE ratio of 31.4. Currently there is 1 analyst that rates Colfax Corporation a buy, no analysts rate it a sell, and 8 rate it a hold.

The average volume for Colfax Corporation has been 392,200 shares per day over the past 30 days. Colfax has a market cap of $6.5 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.66 and a short float of 3.5% with 3.05 days to cover. Shares are up 2.1% 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 Colfax Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 18.3%. Since the same quarter one year prior, revenues rose by 14.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • COLFAX CORP 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, COLFAX CORP turned its bottom line around by earning $1.52 versus -$1.09 in the prior year. This year, the market expects an improvement in earnings ($2.60 versus $1.52).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Machinery industry. The net income increased by 88.1% when compared to the same quarter one year prior, rising from $19.74 million to $37.13 million.
  • Net operating cash flow has slightly increased to $175.32 million or 7.44% when compared to the same quarter last year. In addition, COLFAX CORP has also modestly surpassed the industry average cash flow growth rate of 0.15%.
  • Powered by its strong earnings growth of 138.46% and other important driving factors, this stock has surged by 54.04% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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.

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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