B/E Aerospace (BEAV) Showing Unusual Social Activity Today

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 B/E Aerospace ( BEAV) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified B/E Aerospace as such a stock due to the following factors:

  • BEAV has 19x the normal benchmarked social activity for this time of the day compared to its average of 3.84 mentions/day.
  • BEAV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $162.8 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on BEAV:

B/E Aerospace, Inc. designs, manufactures, sells, and services cabin interior products for commercial aircraft and business jets in the United States and internationally. BEAV has a PE ratio of 24.0. Currently there are 13 analysts that rate B/E Aerospace a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for B/E Aerospace has been 865,000 shares per day over the past 30 days. B/E has a market cap of $9.4 billion and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 1.28 and a short float of 0.9% with 0.53 days to cover. Shares are up 11.7% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates B/E Aerospace 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, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 2.6%. Since the same quarter one year prior, revenues rose by 20.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • B/E AEROSPACE INC has improved earnings per share by 20.7% 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, B/E AEROSPACE INC increased its bottom line by earning $3.52 versus $2.27 in the prior year. This year, the market expects an improvement in earnings ($4.35 versus $3.52).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the Aerospace & Defense industry average, but is less than that of the S&P 500. The net income increased by 21.2% when compared to the same quarter one year prior, going from $89.90 million to $109.00 million.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 41.51% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • 40.03% is the gross profit margin for B/E AEROSPACE INC which we consider to be strong. Regardless of BEAV's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BEAV's net profit margin of 10.77% compares favorably to 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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