Trade-Ideas: RTI International Metals (RTI) Is Today's Strong And Under The Radar 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.

Trade-Ideas LLC identified RTI International Metals ( RTI) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified RTI International Metals as such a stock due to the following factors:

  • RTI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.6 million.
  • RTI is making at least a new 3-day high.
  • RTI has a PE ratio of 29.1.
  • RTI is mentioned 1.58 times per day on StockTwits.
  • RTI has not yet been mentioned on StockTwits today.
  • RTI is currently in the upper 20% of its 1-year range.
  • RTI is in the upper 35% of its 20-day range.
  • RTI is in the upper 45% of its 5-day range.
  • RTI is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on RTI:

RTI International Metals, Inc. produces and supplies titanium mill products; and manufactures fabricated titanium and specialty metal components worldwide. The company operates through two segments, Titanium, and Engineered Products and Services. RTI has a PE ratio of 29.1. Currently there is 1 analyst that rates RTI International Metals a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for RTI International Metals has been 784,300 shares per day over the past 30 days. RTI International has a market cap of $1.2 billion and is part of the industrial goods sector and industrial industry. Shares are up 51.1% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates RTI International Metals 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 19.0%. Since the same quarter one year prior, revenues rose by 13.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • RTI INTL METALS INC 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 year. We feel that this trend should continue. During the past fiscal year, RTI INTL METALS INC increased its bottom line by earning $0.96 versus $0.47 in the prior year. This year, the market expects an improvement in earnings ($1.43 versus $0.96).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 208.4% when compared to the same quarter one year prior, rising from -$4.18 million to $4.53 million.
  • Net operating cash flow has significantly increased by 205.89% to $21.94 million when compared to the same quarter last year. In addition, RTI INTL METALS INC has also vastly surpassed the industry average cash flow growth rate of -42.26%.
  • Powered by its strong earnings growth of 215.38% and other important driving factors, this stock has surged by 36.20% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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.

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