American Woodmark (AMWD) Showing Signs Of A Dead Cat Bounce Today

Trade-Ideas LLC identified American Woodmark ( AMWD) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified American Woodmark as such a stock due to the following factors:

  • AMWD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.6 million.
  • AMWD has traded 75,331 shares today.
  • AMWD is up 3.5% today.
  • AMWD was down 16.4% yesterday.

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More details on AMWD:

American Woodmark Corporation manufactures and distributes kitchen cabinets and vanities for the remodeling and home construction markets in the United States. The company offers framed stock cabinets in approximately 500 various cabinet lines, which include 85 door designs in 21 colors. AMWD has a PE ratio of 23. Currently there are no analysts that rate American Woodmark a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for American Woodmark has been 158,000 shares per day over the past 30 days. American Woodmark has a market cap of $1.3 billion and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 1.48 and a short float of 2.9% with 1.54 days to cover. Shares are down 15.5% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates American Woodmark 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 compelling growth in net income. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • AMWD's revenue growth has slightly outpaced the industry average of 10.0%. Since the same quarter one year prior, revenues rose by 15.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • AMWD's debt-to-equity ratio is very low at 0.09 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.70, which clearly demonstrates the ability to cover short-term cash needs.
  • Powered by its strong earnings growth of 62.22% and other important driving factors, this stock has surged by 66.00% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, AMWD should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • AMERICAN WOODMARK CORP 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, AMERICAN WOODMARK CORP increased its bottom line by earning $2.21 versus $1.31 in the prior year. This year, the market expects an improvement in earnings ($3.63 versus $2.21).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Building Products industry average. The net income increased by 65.0% when compared to the same quarter one year prior, rising from $7.28 million to $12.01 million.

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