Trade-Ideas LLC identified

Manitowoc

(

MTW

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

  • MTW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $69.1 million.
  • MTW has traded 616,941 shares today.
  • MTW is trading at 5.61 times the normal volume for the stock at this time of day.
  • MTW is trading at a new low 4.04% 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 MTW:

TheStreet Recommends

The Manitowoc Company, Inc. designs, manufactures, and sells cranes and related products, and foodservice equipment worldwide. The stock currently has a dividend yield of 0.6%. MTW has a PE ratio of 33. Currently there is 1 analyst that rates Manitowoc a buy, no analysts rate it a sell, and 11 rate it a hold.

The average volume for Manitowoc has been 2.6 million shares per day over the past 30 days. Manitowoc has a market cap of $1.8 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.43 and a short float of 12% with 2.88 days to cover. Shares are down 1.7% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Manitowoc as a

hold

. The company's strongest point has been its a solid financial position based on a variety of debt and liquidity measures that we have looked at. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:

  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 21.7%. Since the same quarter one year prior, revenues fell by 12.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • MANITOWOC CO 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. Stable earnings per share over the past year indicate the company has managed its earnings and share float. We anticipate this stability to falter in the coming year and, in turn, the company to deliver lower earnings per share than prior full year. During the past fiscal year, MANITOWOC CO's EPS of $1.13 remained unchanged from the prior years' EPS of $1.13. For the next year, the market is expecting a contraction of 58.5% in earnings ($0.47 versus $1.13).
  • 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 Machinery industry. The net income has significantly decreased by 93.4% when compared to the same quarter one year ago, falling from $73.10 million to $4.80 million.
  • The gross profit margin for MANITOWOC CO is currently lower than what is desirable, coming in at 25.84%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.55% trails that of the industry average.
  • Net operating cash flow has significantly decreased to $6.30 million or 89.46% 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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