RPM (RPM, $66.19) beats Q2 earnings estimates; shares climb more than +5%
RPM International crushed analysts’ estimates on earnings, sending its shares surging more than +5% on Monday.
The maker of high-performance specialty coatings, sealants and building materials reported fiscal fourth quarter earnings of $1.24 a share, which surpassed the $1.14 a share estimate of analysts surveyed by Zacks. The per-share earnings was +21.6% higher from the year-ago period.
RPM’s earnings before interest and taxes (EBIT) clocked a +51.5% increase, to touch $204.6 million in the quarter compared to $135 million a year ago.
Revenue of $1.6 billion, however, was slightly below (around -0.19%) analyst estimates, according to Zacks. Nonetheless, the revenue was +2.8% higher from the year-ago quarter.
Looking ahead, RPM's forecast for 2020 is almost in line with analysts' estimates. The company expects a sales growth range of 2.5% to 4% in 2020, a 20% to 24% growth range in earnings before interest and taxes, and adjusted and diluted earnings per share of $3.30-$3.42 a share.
RPM's RSI Oscillator ascending out of oversold territory
The RSI Oscillator for RPM moved out of oversold territory on January 13, 2025. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 32 similar instances when the indicator left oversold territory. In of the 32 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where RPM advanced for three days, in of 311 cases, the price rose further within the following month. The odds of a continued upward trend are .
RPM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on February 03, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on RPM as a result. In of 78 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for RPM turned negative on February 04, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 41 similar instances when the indicator turned negative. In of the 41 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where RPM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for RPM entered a downward trend on January 17, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 82, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. RPM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (6.460) is normal, around the industry mean (3.628). P/E Ratio (28.993) is within average values for comparable stocks, (34.064). Projected Growth (PEG Ratio) (2.094) is also within normal values, averaging (6.088). Dividend Yield (0.015) settles around the average of (0.038) among similar stocks. P/S Ratio (2.072) is also within normal values, averaging (93.186).
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General Information
a manufacturer of coatings, sealants and chemicals
Industry ChemicalsSpecialty