Precision Castparts (PCP) 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.

Trade-Ideas LLC identified Precision Castparts ( PCP) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Precision Castparts as such a stock due to the following factors:

  • PCP has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 3.00 mentions/day.
  • PCP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $216.5 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 PCP:

Precision Castparts Corp. manufactures and sells metal components and products worldwide. It operates in three segments: Investment Cast Products, Forged Products, and Airframe Products. The stock currently has a dividend yield of 0.1%. PCP has a PE ratio of 16. Currently there are 9 analysts that rate Precision Castparts a buy, no analysts rate it a sell, and 8 rate it a hold.

The average volume for Precision Castparts has been 1.1 million shares per day over the past 30 days. Precision Castparts has a market cap of $29.7 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.05 and a short float of 2.4% with 2.97 days to cover. Shares are down 13.1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Precision Castparts as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • PCP's revenue growth has slightly outpaced the industry average of 3.3%. Since the same quarter one year prior, revenues slightly increased by 5.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • PRECISION CASTPARTS CORP has improved earnings per share by 5.1% 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, PRECISION CASTPARTS CORP increased its bottom line by earning $11.95 versus $9.75 in the prior year. This year, the market expects an improvement in earnings ($12.59 versus $11.95).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Aerospace & Defense industry average. The net income increased by 2.8% when compared to the same quarter one year prior, going from $433.00 million to $445.00 million.
  • The current debt-to-equity ratio, 0.35, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.91 is somewhat weak and could be cause for future problems.
  • 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. Compared to other companies in the Aerospace & Defense industry and the overall market on the basis of return on equity, PRECISION CASTPARTS CORP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

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