Today's Weak On High Volume Stock: Carlisle Companies (CSL)

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

  • CSL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $30.8 million.
  • CSL has traded 187,914 shares today.
  • CSL is trading at 14.91 times the normal volume for the stock at this time of day.
  • CSL is trading at a new low 3.12% 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 CSL:

Carlisle Companies Incorporated operates as a diversified manufacturing company in the United States and internationally. The stock currently has a dividend yield of 1.2%. CSL has a PE ratio of 2. Currently there are 4 analysts that rate Carlisle Companies a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Carlisle Companies has been 412,600 shares per day over the past 30 days. Carlisle Companies has a market cap of $6.7 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.94 and a short float of 1.8% with 3.98 days to cover. Shares are up 17.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Carlisle Companies as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and reasonable valuation levels. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • CSL's revenue growth has slightly outpaced the industry average of 11.5%. Since the same quarter one year prior, revenues rose by 11.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.31, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, CSL has a quick ratio of 1.52, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 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. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • CARLISLE COS INC 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. During the past fiscal year, CARLISLE COS INC increased its bottom line by earning $4.82 versus $3.83 in the prior year. This year, the market expects an improvement in earnings ($5.70 versus $4.82).

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