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.

Trade-Ideas LLC identified

Anixter International

(

AXE

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Anixter International as such a stock due to the following factors:

  • AXE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.6 million.
  • AXE has traded 347,955 shares today.
  • AXE is down 3.1% today.
  • AXE was up 7% yesterday.

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More details on AXE:

Anixter International Inc., together with its subsidiaries, distributes enterprise cabling and security solutions, electrical and electronic wire and cable products, original equipment manufacturer (OEM) supply fasteners, and other small parts. AXE has a PE ratio of 12. Currently there are no analysts that rate Anixter International a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Anixter International has been 215,300 shares per day over the past 30 days. Anixter International has a market cap of $2.1 billion and is part of the services sector and wholesale industry. The stock has a beta of 1.56 and a short float of 3.7% with 3.56 days to cover. Shares are down 23% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Anixter International as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and poor profit margins.

Highlights from the ratings report include:

  • AXE's revenue growth has slightly outpaced the industry average of 0.3%. Since the same quarter one year prior, revenues slightly increased by 8.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • 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 Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 59.7% when compared to the same quarter one year ago, falling from $47.40 million to $19.10 million.
  • The gross profit margin for ANIXTER INTL INC is rather low; currently it is at 23.16%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.37% trails that of the industry average.

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