Strong And Under The Radar: Cytec Industries (CYT)

Trade-Ideas LLC identified Cytec Industries ( CYT) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Cytec Industries as such a stock due to the following factors:

  • CYT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $42.4 million.
  • CYT has traded 79.4626999999999981127984938211739063262939453125 options contracts today.
  • CYT is making at least a new 3-day high.
  • CYT has a PE ratio of 39.
  • CYT is mentioned 1.26 times per day on StockTwits.
  • CYT has not yet been mentioned on StockTwits today.
  • CYT is currently in the upper 20% of its 1-year range.
  • CYT is in the upper 35% of its 20-day range.
  • CYT is in the upper 45% of its 5-day range.
  • CYT 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 CYT:

Cytec Industries Inc., a specialty materials and chemicals company, focuses on developing, manufacturing, and selling value-added products for aerospace and industrial materials, mining, and plastics industries. The stock currently has a dividend yield of 0.7%. CYT has a PE ratio of 39. Currently there are 2 analysts that rate Cytec Industries a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Cytec Industries has been 698,700 shares per day over the past 30 days. Cytec has a market cap of $5.3 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 0.74 and a short float of 3.2% with 3.52 days to cover. Shares are up 61.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Cytec Industries as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Chemicals industry average. The net income increased by 11.0% when compared to the same quarter one year prior, going from $53.60 million to $59.50 million.
  • The current debt-to-equity ratio, 0.57, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, CYT has a quick ratio of 1.51, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 37.78% is the gross profit margin for CYTEC INDUSTRIES 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 11.96% is above that of the industry average.
  • Net operating cash flow has increased to $88.00 million or 31.93% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 12.62%.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 51.52% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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