Granite Construction (GVA) Showing Signs Of Being Strong And Under The Radar

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 Granite Construction ( GVA) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Granite Construction as such a stock due to the following factors:

  • GVA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.4 million.
  • GVA is making at least a new 3-day high.
  • GVA has a PE ratio of 39.
  • GVA is mentioned 1.52 times per day on StockTwits.
  • GVA has not yet been mentioned on StockTwits today.
  • GVA is currently in the upper 20% of its 1-year range.
  • GVA is in the upper 35% of its 20-day range.
  • GVA is in the upper 45% of its 5-day range.
  • GVA 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.

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

More details on GVA:

Granite Construction Incorporated operates as a heavy civil contractor and a construction materials producer in the United States. The company operates through Construction, Large Project Construction, and Construction Materials segments. The stock currently has a dividend yield of 1.4%. GVA has a PE ratio of 39. Currently there are 5 analysts that rate Granite Construction a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Granite Construction has been 194,500 shares per day over the past 30 days. Granite Construction has a market cap of $1.5 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.39 and a short float of 3.1% with 8.52 days to cover. Shares are down 2.7% year-to-date as of the close of trading on Thursday.

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 Granite Construction 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, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 4.0%. Since the same quarter one year prior, revenues rose by 10.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 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. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.18, which illustrates the ability to avoid short-term cash problems.
  • GRANITE CONSTRUCTION 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, GRANITE CONSTRUCTION INC turned its bottom line around by earning $0.62 versus -$0.94 in the prior year. This year, the market expects an improvement in earnings ($1.69 versus $0.62).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Construction & Engineering industry. The net income increased by 58.4% when compared to the same quarter one year prior, rising from -$20.55 million to -$8.56 million.
  • Net operating cash flow has significantly increased by 65.01% to -$6.92 million when compared to the same quarter last year. In addition, GRANITE CONSTRUCTION INC has also modestly surpassed the industry average cash flow growth rate of 55.42%.

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

Stocks Rise After Trump's Decision on ZTE

Stocks Rise After Trump's Decision on ZTE

Crude Slides as Russia Eases Cuts and U.S. Oil Producers Boost Rig Count

Crude Slides as Russia Eases Cuts and U.S. Oil Producers Boost Rig Count

Stocks Trade Mixed, Energy Shares Fall on Sharp Drop in Oil Prices

Stocks Trade Mixed, Energy Shares Fall on Sharp Drop in Oil Prices

Best Buy's Billionaire Founder: We Were 'Late to the Game' in Online Shopping

Best Buy's Billionaire Founder: We Were 'Late to the Game' in Online Shopping

Jim Cramer: Intuit Had a Fantastic Quarter

Jim Cramer: Intuit Had a Fantastic Quarter