Trade-Ideas LLC identified

Belden

(

BDC

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

  • BDC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.0 million.
  • BDC has traded 642,334 shares today.
  • BDC is down 3% today.
  • BDC was up 23.1% yesterday.

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More details on BDC:

Belden Inc. designs, manufactures, and markets signal transmission solutions for use in broadcast, enterprise, and industrial applications worldwide. The stock currently has a dividend yield of 0.5%. BDC has a PE ratio of 5. Currently there are 3 analysts that rate Belden a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Belden has been 325,900 shares per day over the past 30 days. Belden has a market cap of $1.6 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 2.47 and a short float of 6.2% with 3.47 days to cover. Shares are down 4.1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Belden as a

hold

. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:

  • Net operating cash flow has significantly increased by 60.36% to $86.94 million when compared to the same quarter last year. In addition, BELDEN INC has also vastly surpassed the industry average cash flow growth rate of 10.32%.
  • 41.62% is the gross profit margin for BELDEN INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 2.51% trails the industry average.
  • BDC, with its decline in revenue, slightly underperformed the industry average of 1.7%. Since the same quarter one year prior, revenues slightly dropped by 5.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing 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 57.0% when compared to the same quarter one year ago, falling from $33.85 million to $14.57 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 52.19%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 54.54% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, BDC is still more expensive than most of the other companies in its industry.

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