PGT (PGTI) Is Today's Strong On High Volume 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 PGT ( PGTI) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified PGT as such a stock due to the following factors:

  • PGTI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.8 million.
  • PGTI has traded 145,059 shares today.
  • PGTI is trading at 12.31 times the normal volume for the stock at this time of day.
  • PGTI is trading at a new high 5.07% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in PGTI with the Ticky from Trade-Ideas. See the FREE profile for PGTI NOW at Trade-Ideas

More details on PGTI:

PGT, Inc. manufactures and supplies residential impact-resistant windows and doors in the Southeastern United States, the Gulf Coast, Coastal mid-Atlantic, the Caribbean, Central America, and Canada. PGTI has a PE ratio of 31. Currently there are 5 analysts that rate PGT a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for PGT has been 257,500 shares per day over the past 30 days. PGT has a market cap of $580.1 million and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 0.90 and a short float of 2.3% with 4.22 days to cover. Shares are up 24.9% year-to-date as of the close of trading on Tuesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates PGT as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, expanding profit margins, good cash flow from operations and increase in net income. We feel its 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:
  • PGTI's very impressive revenue growth greatly exceeded the industry average of 0.0%. Since the same quarter one year prior, revenues leaped by 51.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Powered by its strong earnings growth of 85.71% and other important driving factors, this stock has surged by 40.76% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, PGTI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Building Products industry. The net income increased by 98.4% when compared to the same quarter one year prior, rising from $3.35 million to $6.65 million.
  • 35.06% is the gross profit margin for PGT INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 6.97% is above that of the industry average.
  • Net operating cash flow has significantly increased by 192.12% to $10.23 million when compared to the same quarter last year. In addition, PGT INC has also vastly surpassed the industry average cash flow growth rate of 33.25%.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

3 Hot Reads From TheStreet's Top Premium Columnists

3 Hot Reads From TheStreet's Top Premium Columnists