Home News Stock to Watch: Encore Wire Corporation (NASDAQ: WIRE)

Stock to Watch: Encore Wire Corporation (NASDAQ: WIRE)

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Encore Wire Corporation is part of the computer hardware industry and trades as part of the technology sector. The company CEO is Daniel L. Jones. Encore Wire Corp is engaged in manufacturing electrical building wire and cable. It supplies building wire for interior electrical wiring in commercial and industrial buildings, homes, apartments, and manufactured housing.

Previous Intraday Trading Performance:

The WIRE stock showed a previous change of -2.74% with an open at 47.43 and a close of 46.21. It reached an intraday high of 47.85 and a low of 46.07.

Business Wire:  Encore Wire Reports Antidumping Filing

Liquidity:

The stock has a market cap of $963.4m with 20.8m shares outstanding, of which the float is 19.9m shares. Trading volume reached 57,377 shares compared to its average volume of 61,807 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, Encore Wire Corporation shares returned -4.96% and in the past 30 trading days it returned -9.44%. Over three months, it changed -6.04%. In one year it has changed 0.73% and within that year its 52-week high was 58.70 and its 52-week low was 41.00. WIRE stock is 12.71% above its 52 Week Low.

Our calculations show a 200 day moving average of 50.72 and a 50 day moving average of 50.31. Currently WIRE stock is trading -8.90% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

Business Wire:  Encore Wire Reports Antidumping Filing

Earnings:

The last annual fiscal EPS for the company was reported at 3.2 that ended on 31st of December 2017, which according to the previous close, that is a PE of 14.44. Based on 1 analyst estimate, the estimated EPS for the next quarter is 0.69. The TTM EPS is 2.83, which comes to a TTM PE of 16.33. Historically, the PE high was 51.90 and the PE low was 14.40. If the stock reached its PE low, that would represent a price of 40.75, which is a decrease of -11.82%.

The following are the last four quarter reported earnings per share:
06-30-2018:  0.86
03-31-2018:  0.54
12-31-2017:  0.76
09-30-2017:  0.67

The dividend per share is currently 0.08, which is a dividend yield of 0.17%. Also, the payout ratio is 2.83%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 19.65, which means it may be overvalued by -135.21%

Indicators to Watch:

Based on the latest filings, there is 94.20% of institutional ownership. Short-interest is 131,410, which is 0.63% of shares outstanding. The short-interest ratio or days-to-cover ratio is 2.14. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 1.68

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 11.21%, return on assets is 9.81%, profit margin is 6.24%, price-to-sales is 1.07 and price-to-book is 1.48.

Company Scores:

All scores are out of six:
 3  :Valuation Score
 5  :Past Performance Score
 6  :Financial Strength Score
 0  :Future Growth Score
 0  :Dividend Score
 3  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.