Tesla Motors (TSLA) Is Today's Strong On High Volume Stock
Trade-Ideas LLC identified Tesla Motors ( TSLA) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Tesla Motors as such a stock due to the following factors:
- TSLA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $1.2 billion.
- TSLA has traded 1.0 million shares today.
- TSLA is trading at 2.15 times the normal volume for the stock at this time of day.
- TSLA is trading at a new high 4.02% 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 TSLA: Tesla Motors, Inc. designs, develops, manufactures, and sells electric vehicles and stationary energy storage products in the United States, China, Norway, and internationally. It primarily offers sedans and sport utility vehicles. Currently there are 4 analysts that rate Tesla Motors a buy, 5 analysts rate it a sell, and 7 rate it a hold. The average volume for Tesla Motors has been 5.0 million shares per day over the past 30 days. Tesla has a market cap of $28.9 billion and is part of the consumer goods sector and automotive industry. The stock has a beta of 0.78 and a short float of 32.2% with 5.26 days to cover. Shares are down 9.7% year-to-date as of the close of trading on Friday.
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Analysis:
rates Tesla Motors as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself. Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Automobiles industry. The net income has significantly decreased by 83.1% when compared to the same quarter one year ago, falling from -$154.18 million to -$282.27 million.
- The debt-to-equity ratio is very high at 3.08 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, TSLA has a quick ratio of 0.56, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Automobiles industry and the overall market, TESLA MOTORS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to -$249.61 million or 89.39% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The share price of TESLA MOTORS INC has not done very well: it is down 19.39% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- You can view the full Tesla Motors Ratings Report.
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