Lydall (LDL) Is Strong On High Volume Today

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

  • LDL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.1 million.
  • LDL has traded 64,430 shares today.
  • LDL is trading at 22.77 times the normal volume for the stock at this time of day.
  • LDL is trading at a new high 5.12% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 LDL:

Lydall, Inc designs and manufactures specialty engineered filtration media, industrial thermal insulating solutions, and automotive thermal and acoustical barriers worldwide. LDL has a PE ratio of 13.

The average volume for Lydall has been 80,000 shares per day over the past 30 days. Lydall has a market cap of $598.8 million and is part of the consumer goods sector and automotive industry. The stock has a beta of 1.41 and a short float of 1.4% with 2.71 days to cover. Shares are up 5.9% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Lydall as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and solid stock price performance. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • LYDALL 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, LYDALL INC increased its bottom line by earning $1.28 versus $1.13 in the prior year. This year, the market expects an improvement in earnings ($2.10 versus $1.28).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Machinery industry. The net income increased by 169.0% when compared to the same quarter one year prior, rising from $4.16 million to $11.19 million.
  • LDL's debt-to-equity ratio is very low at 0.17 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, LDL has a quick ratio of 2.38, which demonstrates the ability of the company to cover short-term liquidity needs.
  • After a year of stock price fluctuations, the net result is that LDL's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.

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