Trade-Ideas LLC identified Valspar ( VAL) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Valspar as such a stock due to the following factors:

  • VAL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $86.8 million.
  • VAL traded 95,741 shares today in the pre-market hours as of 8:26 AM, representing 11.9% of its average daily volume.

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

More details on VAL:

The Valspar Corporation develops, manufactures, and distributes a range of coatings, paints, and related products worldwide. It operates in two segments, Coatings and Paints. The stock currently has a dividend yield of 1.6%. VAL has a PE ratio of 2. Currently there are 4 analysts that rate Valspar a buy, 2 analysts rate it a sell, and 7 rate it a hold.

The average volume for Valspar has been 637,100 shares per day over the past 30 days. Valspar has a market cap of $6.5 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.40 and a short float of 3.6% with 3.46 days to cover. Shares are up 2.1% year-to-date as of the close of trading on Thursday.

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 Valspar as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Net operating cash flow has significantly increased by 187.85% to $20.49 million when compared to the same quarter last year. In addition, VALSPAR CORP has also vastly surpassed the industry average cash flow growth rate of -9.68%.
  • 38.62% is the gross profit margin for VALSPAR CORP which we consider to be strong. 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 5.91% trails the industry average.
  • VALSPAR CORP's earnings per share declined by 47.6% 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, VALSPAR CORP increased its bottom line by earning $4.84 versus $4.02 in the prior year. This year, the market expects an improvement in earnings ($4.85 versus $4.84).
  • VAL, with its decline in revenue, slightly underperformed the industry average of 10.8%. Since the same quarter one year prior, revenues fell by 12.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • After a year of stock price fluctuations, the net result is that VAL'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, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.

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.