Trade-Ideas: Intel (INTC) Is Today's Weak On High Relative Volume Stock

Trade-Ideas LLC identified Intel (INTC) as a weak on high relative volume candidate
By Marissa Goodbody ,

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified

Intel

(

INTC

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Intel as such a stock due to the following factors:

  • INTC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $865.9 million.
  • INTC has traded 39.5 million shares today.
  • INTC is trading at 22.01 times the normal volume for the stock at this time of day.
  • INTC is trading at a new low 3.02% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 INTC:

Intel Corporation designs, manufactures, and sells integrated digital technology platforms worldwide. The company operates through PC Client Group, Data Center Group, Other Intel Architecture, Software and Services, and All Other segments. The stock currently has a dividend yield of 3.8%. INTC has a PE ratio of 12.0. Currently there are 11 analysts that rate Intel a buy, 6 analysts rate it a sell, and 19 rate it a hold.

The average volume for Intel has been 42.1 million shares per day over the past 30 days. Intel has a market cap of $119.0 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.99 and a short float of 4.8% with 6.38 days to cover. Shares are up 16.1% year to date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Intel as a

buy

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from the ratings report include:

  • INTC's debt-to-equity ratio is very low at 0.26 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, INTC has a quick ratio of 1.76, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has increased to $4,285.00 million or 44.17% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 4.32%.
  • The gross profit margin for INTEL CORP is currently very high, coming in at 72.00%. Regardless of INTC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 16.25% trails the industry average.
  • Despite the weak revenue results, INTC has outperformed against the industry average of 15.8%. Since the same quarter one year prior, revenues slightly dropped by 2.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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