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

  • GPK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $33.4 million.
  • GPK has traded 1.5 million shares today.
  • GPK is trading at 2.86 times the normal volume for the stock at this time of day.
  • GPK is trading at a new low 3.03% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 GPK:

Graphic Packaging Holding Company, together with its subsidiaries, provides paper-based packaging solutions to food, beverage, and other consumer products companies. The company operates in three segments: Paperboard Mills, Americas Paperboard Packaging, and Europe Paperboard Packaging. The stock currently has a dividend yield of 1.5%. GPK has a PE ratio of 19. Currently there are 5 analysts that rate Graphic Packaging a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Graphic Packaging has been 4.4 million shares per day over the past 30 days. Graphic Packaging has a market cap of $4.2 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.15 and a short float of 0.6% with 0.47 days to cover. Shares are up 0.2% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Graphic Packaging as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 10.2%. Since the same quarter one year prior, revenues slightly increased by 2.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • GRAPHIC PACKAGING HOLDING CO has improved earnings per share by 30.8% 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, GRAPHIC PACKAGING HOLDING CO increased its bottom line by earning $0.69 versus $0.28 in the prior year. This year, the market expects an improvement in earnings ($0.80 versus $0.69).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Containers & Packaging industry. The net income increased by 37.8% when compared to the same quarter one year prior, rising from $41.50 million to $57.20 million.
  • Net operating cash flow has increased to $238.20 million or 21.90% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -5.46%.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Containers & Packaging industry and the overall market on the basis of return on equity, GRAPHIC PACKAGING HOLDING CO has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

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