Don't Miss Today's Strong And Under The Radar Stock: Continental Building Products (CBPX)

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 Continental Building Products ( CBPX) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Continental Building Products as such a stock due to the following factors:

  • CBPX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.4 million.
  • CBPX is making at least a new 3-day high.
  • CBPX is mentioned 1.90 times per day on StockTwits.
  • CBPX has not yet been mentioned on StockTwits today.
  • CBPX is currently in the upper 20% of its 1-year range.
  • CBPX is in the upper 35% of its 20-day range.
  • CBPX is in the upper 45% of its 5-day range.
  • CBPX 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 CBPX:

Continental Building Products, Inc. manufactures and sells gypsum wallboard and complementary finishing products in the eastern United States and eastern Canada. Currently there are 4 analysts that rate Continental Building Products a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Continental Building Products has been 362,900 shares per day over the past 30 days. Continental Building has a market cap of $970.2 million and is part of the industrial goods sector and materials & construction industry. Shares are up 24% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Continental Building Products as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

Highlights from the ratings report include:
  • CBPX's revenue growth has slightly outpaced the industry average of 0.3%. Since the same quarter one year prior, revenues slightly increased by 6.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 125.00% and other important driving factors, this stock has surged by 34.15% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • 36.48% is the gross profit margin for CONTINENTAL BUILDING PRODS 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 2.19% trails the industry average.
  • Even though the current debt-to-equity ratio is 1.10, it is still below the industry average, suggesting that this level of debt is acceptable within the Building Products industry. Despite the fact that CBPX's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.88 is high and demonstrates strong liquidity.

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Trade-Ideas: Continental Building Products (CBPX) Is Today's Strong And Under The Radar Stock

Trade-Ideas: Continental Building Products (CBPX) Is Today's Strong And Under The Radar Stock