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 $11.2 million.
  • ITRI has traded 69,450 shares today.
  • ITRI is trading at 10.93 times the normal volume for the stock at this time of day.
  • ITRI is trading at a new high 10.08% 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 are 2 analysts that rate Itron a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Itron has been 248,100 shares per day over the past 30 days. Itron has a market cap of $1.4 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.14 and a short float of 8.2% with 10.03 days to cover. Shares are up 0.9% year-to-date as of the close of trading on Wednesday.

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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 impressive record of earnings per share growth, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins.

Highlights from the ratings report include:

  • ITRON INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. 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 ($1.00 versus -$0.58).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 73.7% when compared to the same quarter one year prior, rising from $7.31 million to $12.70 million.
  • ITRI, with its decline in revenue, slightly underperformed the industry average of 1.7%. Since the same quarter one year prior, revenues slightly dropped by 5.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The gross profit margin for ITRON INC is currently lower than what is desirable, coming in at 33.86%. Regardless of ITRI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 2.70% trails the industry average.
  • Net operating cash flow has significantly decreased to $2.59 million or 94.75% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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