Fibria Celulose (FBR) Strong On High Relative Volume Today

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

  • FBR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.0 million.
  • FBR has traded 79,284 shares today.
  • FBR is trading at 2.14 times the normal volume for the stock at this time of day.
  • FBR is trading at a new high 3.08% 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 FBR:

Fibria Celulose S.A. engages in the production, sale, and export of eucalyptus pulp, wood, and other forest products. The stock currently has a dividend yield of 10.4%. FBR has a PE ratio of 23. Currently there is 1 analyst that rates Fibria Celulose a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Fibria Celulose has been 1.1 million shares per day over the past 30 days. Fibria Celulose has a market cap of $5.5 billion and is part of the consumer goods sector and consumer non-durables industry. Shares are down 20.8% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Fibria Celulose as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and expanding profit margins. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 1.8%. Since the same quarter one year prior, revenues rose by 27.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • FIBRIA CELULOSE SA 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. This trend suggests that the performance of the business is improving. During the past fiscal year, FIBRIA CELULOSE SA increased its bottom line by earning $0.14 versus $0.11 in the prior year. This year, the market expects an improvement in earnings ($4.70 versus $0.14).
  • FBR's debt-to-equity ratio of 1.00 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.25 is sturdy.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Paper & Forest Products industry average, but is greater than that of the S&P 500. The net income increased by 495.4% when compared to the same quarter one year prior, rising from -$57.87 million to $228.84 million.
  • FBR has underperformed the S&P 500 Index, declining 23.74% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.

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