Strong And Under The Radar: Airgas (ARG)

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

  • ARG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $97.0 million.
  • ARG has traded 144.657000000000010686562745831906795501708984375 options contracts today.
  • ARG is making at least a new 3-day high.
  • ARG has a PE ratio of 3.
  • ARG is mentioned 1.90 times per day on StockTwits.
  • ARG has not yet been mentioned on StockTwits today.
  • ARG is currently in the upper 20% of its 1-year range.
  • ARG is in the upper 35% of its 20-day range.
  • ARG is in the upper 45% of its 5-day range.
  • ARG 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.

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

More details on ARG:

Airgas, Inc., together with its subsidiaries, supplies industrial, medical, and specialty gases; and welding equipment and related products. It operates through two segments, Distribution and All Other Operations. The stock currently has a dividend yield of 1.7%. ARG has a PE ratio of 3. Currently there are no analysts that rate Airgas a buy, 2 analysts rate it a sell, and 10 rate it a hold.

The average volume for Airgas has been 1.0 million shares per day over the past 30 days. Airgas has a market cap of $10.2 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 0.78 and a short float of 2.2% with 3.24 days to cover. Shares are up 2.4% 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 Airgas as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The gross profit margin for AIRGAS INC is rather high; currently it is at 57.24%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 5.70% trails the industry average.
  • AIRGAS INC's earnings per share declined by 17.9% 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, AIRGAS INC increased its bottom line by earning $4.86 versus $4.68 in the prior year. This year, the market expects an improvement in earnings ($4.90 versus $4.86).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 10.7%. Since the same quarter one year prior, revenues slightly dropped by 2.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • Even though the current debt-to-equity ratio is 1.37, it is still below the industry average, suggesting that this level of debt is acceptable within the Chemicals industry. Despite the fact that ARG's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.56 is low and demonstrates weak liquidity.

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

AMD Rises Above the Competition; Loan Losses Mount for Big Banks -- ICYMI

AMD Rises Above the Competition; Loan Losses Mount for Big Banks -- ICYMI

McKesson Internal Review Clears Senior Management of Wrongdoing on Opioids

McKesson Internal Review Clears Senior Management of Wrongdoing on Opioids

Starbucks Surprises Wall Street With U.S. Sales Up a Paltry 2%

Starbucks Surprises Wall Street With U.S. Sales Up a Paltry 2%

Dow Jumps 238 Points as S&P 500, Nasdaq Also Climb

Dow Jumps 238 Points as S&P 500, Nasdaq Also Climb

Why Nashville, Denver, LA Should Reconsider Bids for Amazon HQ2

Why Nashville, Denver, LA Should Reconsider Bids for Amazon HQ2