Trade-Ideas: Visteon (VC) Is Today's New Lifetime High Stock

Trade-Ideas LLC identified Visteon (VC) as a new lifetime high candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Visteon

(

VC

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Visteon as such a stock due to the following factors:

  • VC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $56.9 million.
  • VC has traded 50,997 shares today.
  • VC is trading at a new lifetime high.

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More details on VC:

Visteon Corporation designs, engineers, and manufactures products for original equipment vehicle manufacturers worldwide. It operates in three segments: Climate, Electronics, and Other. VC has a PE ratio of 32. Currently there are 6 analysts that rate Visteon a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Visteon has been 601,900 shares per day over the past 30 days. Visteon has a market cap of $4.4 billion and is part of the consumer goods sector and automotive industry. The stock has a beta of 0.56 and a short float of 5.8% with 5.13 days to cover. Shares are up 2.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Visteon as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • VC's very impressive revenue growth greatly exceeded the industry average of 12.6%. Since the same quarter one year prior, revenues leaped by 61.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • VC's debt-to-equity ratio is very low at 0.14 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.60, which clearly demonstrates the ability to cover short-term cash needs.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Auto Components industry. The net income increased by 1524.5% when compared to the same quarter one year prior, rising from -$155.00 million to $2,208.00 million.
  • Net operating cash flow has remained constant at $31.00 million with no significant change when compared to the same quarter last year. Along with maintaining stable cash flow from operations, the firm exceeded the industry average cash flow growth rate of -31.22%.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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