Valspar (VAL) Hits New Lifetime High 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 Valspar ( VAL) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Valspar as such a stock due to the following factors:

  • VAL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $31.9 million.
  • VAL has traded 93,764 shares today.
  • VAL is trading at a new lifetime high.

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More details on VAL:

The Valspar Corporation manufactures and distributes various coatings, paints, and related products worldwide. The company operates in two segments, Coatings and Paints. The stock currently has a dividend yield of 1.4%. VAL has a PE ratio of 22.6. Currently there are 6 analysts that rate Valspar a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Valspar has been 415,400 shares per day over the past 30 days. Valspar has a market cap of $6.3 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.11 and a short float of 1.9% with 4.00 days to cover. Shares are up 6.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Valspar as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, growth in earnings per share, increase in net income and expanding profit margins. 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:
  • VAL's revenue growth has slightly outpaced the industry average of 7.2%. Since the same quarter one year prior, revenues slightly increased by 9.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • VALSPAR CORP has improved earnings per share by 17.9% 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, VALSPAR CORP increased its bottom line by earning $3.20 versus $3.09 in the prior year. This year, the market expects an improvement in earnings ($4.10 versus $3.20).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Chemicals industry average. The net income increased by 11.8% when compared to the same quarter one year prior, going from $76.91 million to $85.96 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Chemicals industry and the overall market, VALSPAR CORP's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • 36.59% is the gross profit margin for VALSPAR CORP 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 7.60% trails 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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