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

  • MSA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.6 million.
  • MSA has traded 63,096 shares today.
  • MSA is trading at 11.11 times the normal volume for the stock at this time of day.
  • MSA is trading at a new high 6.04% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 MSA:

MSA Safety Incorporated develops, manufactures, and supplies safety products that protect people and facility infrastructures in North America, Europe, and internationally. The stock currently has a dividend yield of 2.6%. MSA has a PE ratio of 26. Currently there are 2 analysts that rate MSA Safety a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for MSA Safety has been 127,700 shares per day over the past 30 days. MSA Safety has a market cap of $1.9 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.72 and a short float of 2.8% with 7.57 days to cover. Shares are up 15.7% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates MSA Safety 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, reasonable valuation levels, solid stock price performance and good cash flow from operations. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • MSA's revenue growth has slightly outpaced the industry average of 6.6%. Since the same quarter one year prior, revenues slightly increased by 8.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.89, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, MSA has a quick ratio of 1.54, 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.
  • Net operating cash flow has increased to -$11.01 million or 33.94% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 18.52%.

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