Weak On High Volume: Clearwater Paper (CLW)

Trade-Ideas LLC identified Clearwater Paper ( CLW) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Clearwater Paper as such a stock due to the following factors:

  • CLW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.5 million.
  • CLW has traded 96,361 shares today.
  • CLW is trading at 14.87 times the normal volume for the stock at this time of day.
  • CLW is trading at a new low 4.08% 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.

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

More details on CLW:

Clearwater Paper Corporation produces and sells private label tissue and bleached paperboard products in the United States and internationally. The company operates through two segments, Consumer Products, and Pulp and Paperboard. CLW has a PE ratio of 602. Currently there are 3 analysts that rate Clearwater Paper a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Clearwater Paper has been 126,300 shares per day over the past 30 days. Clearwater has a market cap of $1.0 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.46 and a short float of 2.2% with 2.49 days to cover. Shares are down 20.8% 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 Clearwater Paper as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, growth in earnings per share and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Paper & Forest Products industry average. The net income increased by 25.2% when compared to the same quarter one year prior, rising from $12.45 million to $15.60 million.
  • CLEARWATER PAPER CORP has improved earnings per share by 32.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CLEARWATER PAPER CORP swung to a loss, reporting -$0.18 versus $4.95 in the prior year. This year, the market expects an improvement in earnings ($3.38 versus -$0.18).
  • CLW has underperformed the S&P 500 Index, declining 21.83% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Paper & Forest Products industry and the overall market, CLEARWATER PAPER CORP's return on equity significantly trails that of both the industry average and the S&P 500.

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

Bank of America Profit Jumps 32% on Tax Cuts, Higher Interest Rates

Bank of America Profit Jumps 32% on Tax Cuts, Higher Interest Rates

Sears, Saudi Arabia, Bank of America and Cannabis - 5 Things You Must Know

Sears, Saudi Arabia, Bank of America and Cannabis - 5 Things You Must Know

Jim Cramer: Fed Should Worry Less About Inflation and More About the Economy

Jim Cramer: Fed Should Worry Less About Inflation and More About the Economy

Dow Futures Tumble as Saudi Tensions, Trade Concerns Keep Investors Cautious

Dow Futures Tumble as Saudi Tensions, Trade Concerns Keep Investors Cautious

What Happens to Sears Gift Cards and Warranties Now That Chain Is Bankrupt?

What Happens to Sears Gift Cards and Warranties Now That Chain Is Bankrupt?