Trade-Ideas LLC identified

Navistar International

(

NAV

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

  • NAV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $34.0 million.
  • NAV has traded 225,164 shares today.
  • NAV is trading at 2.30 times the normal volume for the stock at this time of day.
  • NAV is trading at a new high 7.03% 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 NAV:

Navistar International Corporation manufactures and sells commercial and military trucks, diesel engines, and school and commercial buses; and provides service parts for trucks and diesel engines worldwide. Currently there are 4 analysts that rate Navistar International a buy, 3 analysts rate it a sell, and 14 rate it a hold.

The average volume for Navistar International has been 1.8 million shares per day over the past 30 days. Navistar International has a market cap of $660.5 million and is part of the consumer goods sector and automotive industry. The stock has a beta of 2.23 and a short float of 49% with 3.54 days to cover. Shares are down 74.1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Navistar International as a

sell

. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • 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 1300.0% when compared to the same quarter one year ago, falling from -$2.00 million to -$28.00 million.
  • The gross profit margin for NAVISTAR INTERNATIONAL CORP is rather low; currently it is at 17.22%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.10% trails that of the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 73.70%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 825.00% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • Despite the weak revenue results, NAV has outperformed against the industry average of 21.8%. Since the same quarter one year prior, revenues fell by 10.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • NAVISTAR INTERNATIONAL CORP 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, NAVISTAR INTERNATIONAL CORP continued to lose money by earning -$7.65 versus -$10.65 in the prior year. This year, the market expects an improvement in earnings ($1.63 versus -$7.65).

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