Trade-Ideas LLC identified

Itron

(

ITRI

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

  • ITRI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.0 million.
  • ITRI has traded 80,349 shares today.
  • ITRI is trading at 5.89 times the normal volume for the stock at this time of day.
  • ITRI is trading at a new high 4.02% 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 ITRI:

Itron, Inc. provides metering solutions to electricity, gas, and water utility markets worldwide. The company operates through three segments: Electricity, Gas, and Water. Currently there is 1 analyst that rates Itron a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Itron has been 405,500 shares per day over the past 30 days. Itron has a market cap of $1.3 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.94 and a short float of 10.5% with 12.75 days to cover. Shares are down 18.8% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Itron as a

hold

. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • Net operating cash flow has significantly increased by 4905.11% to $21.52 million when compared to the same quarter last year. In addition, ITRON INC has also vastly surpassed the industry average cash flow growth rate of 32.81%.
  • ITRON INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, ITRON INC continued to lose money by earning -$0.58 versus -$3.75 in the prior year. This year, the market expects an improvement in earnings ($1.06 versus -$0.58).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 6.5%. Since the same quarter one year prior, revenues slightly dropped by 3.9%. 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 173.7% when compared to the same quarter one year ago, falling from $19.26 million to -$14.20 million.
  • The gross profit margin for ITRON INC is currently lower than what is desirable, coming in at 27.68%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -3.02% trails that of the industry average.

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