Strong On High Volume: Chart Industries (GTLS)

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 Chart Industries ( GTLS) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Chart Industries as such a stock due to the following factors:

  • GTLS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $27.6 million.
  • GTLS has traded 118,064 shares today.
  • GTLS is trading at 3.68 times the normal volume for the stock at this time of day.
  • GTLS is trading at a new high 3.04% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on GTLS:

Chart Industries, Inc. manufactures and sells engineered equipment for the production, storage, and end-use of hydrocarbon and industrial gases worldwide. The company operates in three segments: Energy & Chemicals (E&C), Distribution & Storage (D&S), and BioMedical. GTLS has a PE ratio of 26.0. Currently there are 6 analysts that rate Chart Industries a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Chart Industries has been 452,800 shares per day over the past 30 days. Chart has a market cap of $2.0 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 2.06 and a short float of 9.4% with 7.72 days to cover. Shares are down 32.6% 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 Chart Industries 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, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • GTLS's revenue growth has slightly outpaced the industry average of 3.4%. Since the same quarter one year prior, revenues slightly increased by 2.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.32, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.30, which illustrates the ability to avoid short-term cash problems.
  • CHART INDUSTRIES INC's earnings per share improvement from the most recent quarter was slightly positive. 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, CHART INDUSTRIES INC increased its bottom line by earning $2.60 versus $2.36 in the prior year. This year, the market expects an improvement in earnings ($2.89 versus $2.60).
  • The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Machinery industry average. The net income increased by 0.3% when compared to the same quarter one year prior, going from $20.00 million to $20.07 million.
  • GTLS's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 44.00%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Despite the heavy decline in its share price over the last year, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry. We feel, however, that other strengths this company displays compensate for this.

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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