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

  • BCPC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.7 million.
  • BCPC has traded 56,536 shares today.
  • BCPC is trading at 9.44 times the normal volume for the stock at this time of day.
  • BCPC is trading at a new high 11.17% 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.

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

More details on BCPC:

Balchem Corporation develops, manufactures, and markets specialty performance ingredients and products for the food, nutritional, feed, pharmaceutical, and medical sterilization industries in the United States and internationally. The stock currently has a dividend yield of 0.6%. BCPC has a PE ratio of 28. Currently there is 1 analyst that rates Balchem a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Balchem has been 125,000 shares per day over the past 30 days. Balchem has a market cap of $1.8 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.27 and a short float of 4.3% with 7.65 days to cover. Shares are down 6.9% year-to-date as of the close of trading on Monday.

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 Balchem as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations, notable return on equity and solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • The debt-to-equity ratio is somewhat low, currently at 0.67, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, BCPC has a quick ratio of 1.89, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 37.89% is the gross profit margin for BALCHEM CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 9.97% is above that of the industry average.
  • Net operating cash flow has increased to $28.98 million or 33.94% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -9.61%.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Chemicals industry and the overall market on the basis of return on equity, BALCHEM CORP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • BALCHEM CORP's earnings per share declined by 10.2% 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, BALCHEM CORP increased its bottom line by earning $1.70 versus $1.47 in the prior year. This year, the market expects an improvement in earnings ($2.43 versus $1.70).

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.