Apogee (APOG): Today's Weak 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 Apogee ( APOG) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Apogee as such a stock due to the following factors:

  • APOG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.9 million.
  • APOG has traded 69,368 shares today.
  • APOG is trading at 9.84 times the normal volume for the stock at this time of day.
  • APOG is trading at a new low 7.08% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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.

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More details on APOG:

Apogee Enterprises, Inc. designs and develops glass solutions for enclosing commercial buildings and framing art in the United States, Canada, and Brazil. The stock currently has a dividend yield of 0.7%. APOG has a PE ratio of 35. Currently there are 2 analysts that rate Apogee a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Apogee has been 250,300 shares per day over the past 30 days. Apogee has a market cap of $1.8 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.28 and a short float of 2.5% with 2.26 days to cover. Shares are up 41.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Apogee as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. 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 0.3%. Since the same quarter one year prior, revenues rose by 15.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • APOG's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, APOG has a quick ratio of 1.54, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Powered by its strong earnings growth of 74.07% and other important driving factors, this stock has surged by 92.31% 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, APOG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • APOGEE ENTERPRISES 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 two years. We feel that this trend should continue. During the past fiscal year, APOGEE ENTERPRISES INC increased its bottom line by earning $1.72 versus $0.95 in the prior year. This year, the market expects an improvement in earnings ($2.12 versus $1.72).
  • 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 72.8% when compared to the same quarter one year prior, rising from $8.04 million to $13.89 million.

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