Trade-Ideas LLC identified

Franklin Electric

(

FELE

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

  • FELE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.3 million.
  • FELE has traded 61,877 shares today.
  • FELE is trading at 8.22 times the normal volume for the stock at this time of day.
  • FELE is trading at a new high 8.04% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 FELE:

TheStreet Recommends

Franklin Electric Co., Inc., together with its subsidiaries, designs, manufactures, and distributes water and fuel pumping systems worldwide. It operates in two segments, Water Systems and Fueling Systems. The stock currently has a dividend yield of 1.4%. FELE has a PE ratio of 23. Currently there are 2 analysts that rate Franklin Electric a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Franklin Electric has been 272,400 shares per day over the past 30 days. Franklin Electric has a market cap of $1.3 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.39 and a short float of 7.7% with 17.48 days to cover. Shares are down 24.6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Franklin Electric as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, 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, feeble growth in the company's earnings per share and deteriorating net income.

Highlights from the ratings report include:

  • The current debt-to-equity ratio, 0.38, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.35, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has significantly increased by 215.72% to $28.85 million when compared to the same quarter last year. In addition, FRANKLIN ELECTRIC CO INC has also vastly surpassed the industry average cash flow growth rate of -26.50%.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 16.6%. Since the same quarter one year prior, revenues fell by 13.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • FRANKLIN ELECTRIC CO INC's earnings per share declined by 40.0% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, FRANKLIN ELECTRIC CO INC reported lower earnings of $1.42 versus $1.68 in the prior year. For the next year, the market is expecting a contraction of 1.4% in earnings ($1.40 versus $1.42).
  • 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 Electrical Equipment industry. The net income has significantly decreased by 40.3% when compared to the same quarter one year ago, falling from $27.07 million to $16.16 million.

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