Douglas Dynamics (PLOW) Is Strong On High Volume Today

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

  • PLOW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.5 million.
  • PLOW has traded 88,497 shares today.
  • PLOW is trading at 12.05 times the normal volume for the stock at this time of day.
  • PLOW is trading at a new high 16.03% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in PLOW with the Ticky from Trade-Ideas. See the FREE profile for PLOW NOW at Trade-Ideas

More details on PLOW:

Douglas Dynamics, Inc. manufactures and sells snow and ice control equipment in the United States and Canada. The company offers snowplows, sand and salt spreaders, dump bodies, muni-bodies, replacement parts, and related parts and accessories. The stock currently has a dividend yield of 3.5%. PLOW has a PE ratio of 12. Currently there are no analysts that rate Douglas Dynamics a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Douglas Dynamics has been 138,800 shares per day over the past 30 days. Douglas Dynamics has a market cap of $603.0 million and is part of the consumer goods sector and automotive industry. The stock has a beta of 1.50 and a short float of 6.2% with 10.20 days to cover. Shares are up 27.2% year-to-date as of the close of trading on Friday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Douglas Dynamics as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, notable return on equity and reasonable valuation levels. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • Powered by its strong earnings growth of 2200.00% and other important driving factors, this stock has surged by 32.28% 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, PLOW should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Machinery industry. The net income increased by 1278.1% when compared to the same quarter one year prior, rising from $0.38 million to $5.28 million.
  • The debt-to-equity ratio is somewhat low, currently at 0.92, and is less than that of the industry average, implying that there has been a relatively successful effort in the 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.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Machinery industry and the overall market, DOUGLAS DYNAMICS INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

Don't Panic! The Risk of a Recession This Year Is Low

Don't Panic! The Risk of a Recession This Year Is Low

Even Standing Desk Company Varidesk Is Watching How the Trump Tariffs Play Out

Even Standing Desk Company Varidesk Is Watching How the Trump Tariffs Play Out

State Street Gets Pummeled on Software Deal; Pizza Wars Are Raging -- ICYMI

State Street Gets Pummeled on Software Deal; Pizza Wars Are Raging -- ICYMI

Schlumberger Stock Dips as Investors Ignore Start of 'Earnings Liftoff'

Schlumberger Stock Dips as Investors Ignore Start of 'Earnings Liftoff'

GSK Shares Climb as Board Is Said to Mull Breakup of Pharma Giant

GSK Shares Climb as Board Is Said to Mull Breakup of Pharma Giant