Don't Miss Today's Strong And Under The Radar Stock: California Water Service Group (CWT)

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

  • CWT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.8 million.
  • CWT has traded 15.641799999999999926103555480949580669403076171875 options contracts today.
  • CWT is making at least a new 3-day high.
  • CWT has a PE ratio of 3.
  • CWT is mentioned 1.48 times per day on StockTwits.
  • CWT has not yet been mentioned on StockTwits today.
  • CWT is currently in the upper 20% of its 1-year range.
  • CWT is in the upper 35% of its 20-day range.
  • CWT is in the upper 45% of its 5-day range.
  • CWT 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.

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More details on CWT:

California Water Service Group, through its subsidiaries, provides water utility and other related services in California, Washington, New Mexico, and Hawaii. The stock currently has a dividend yield of 2.4%. CWT has a PE ratio of 3. Currently there are no analysts that rate California Water Service Group a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for California Water Service Group has been 482,500 shares per day over the past 30 days. California Water Service Group has a market cap of $1.4 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.66 and a short float of 4.7% with 8.36 days to cover. Shares are up 22.8% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates California Water Service Group as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, largely solid financial position with reasonable debt levels by most measures 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:
  • Net operating cash flow has increased to $31.03 million or 15.38% when compared to the same quarter last year. In addition, CALIFORNIA WATER SERVICE GP has also modestly surpassed the industry average cash flow growth rate of 15.28%.
  • The debt-to-equity ratio is somewhat low, currently at 0.95, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.84 is somewhat weak and could be cause for future problems.
  • CALIFORNIA WATER SERVICE GP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, CALIFORNIA WATER SERVICE GP reported lower earnings of $0.94 versus $1.19 in the prior year. This year, the market expects an improvement in earnings ($1.02 versus $0.94).
  • CWT, with its decline in revenue, slightly underperformed the industry average of 8.4%. Since the same quarter one year prior, revenues slightly dropped by 0.2%. The declining revenue appears to have seeped down to the company's 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.

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