Trade-Ideas LLC identified

Ford Motor

(

F

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

  • F has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $690.0 million.
  • F has traded 22.2 million shares today.
  • F is trading at 3.20 times the normal volume for the stock at this time of day.
  • F is trading at a new low 5.06% 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 F:

TheStreet Recommends

Ford Motor Company manufactures and distributes automobiles worldwide. The company operates through two sectors, Automotive and Financial Services. The Automotive sector develops, manufactures, distributes, and services vehicles, parts, and accessories. The stock currently has a dividend yield of 5%. F has a PE ratio of 1. Currently there are 7 analysts that rate Ford Motor a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Ford Motor has been 33.6 million shares per day over the past 30 days. Ford has a market cap of $47.8 billion and is part of the consumer goods sector and automotive industry. The stock has a beta of 1.18 and a short float of 2.5% with 1.57 days to cover. Shares are down 13% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Ford Motor as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, generally higher debt management risk and poor profit margins.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Automobiles industry. The net income increased by 128.6% when compared to the same quarter one year prior, rising from $835.00 million to $1,909.00 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.5%. Since the same quarter one year prior, revenues slightly increased by 9.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • FORD MOTOR CO reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, FORD MOTOR CO reported lower earnings of $0.78 versus $1.75 in the prior year. This year, the market expects an improvement in earnings ($1.65 versus $0.78).
  • F has underperformed the S&P 500 Index, declining 18.71% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
  • The debt-to-equity ratio is very high at 4.60 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.

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