Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified

Honda Motor

(

HMC

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Honda Motor as such a stock due to the following factors:

  • HMC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.7 million.
  • HMC traded 53,461 shares today in the pre-market hours as of 9:14 AM, representing 13.8% of its average daily volume.

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More details on HMC:

Honda Motor Co., Ltd. develops, manufactures, and distributes motorcycles, automobiles, power, and other products worldwide. The company operates through four segments: Motorcycle Business, Automobile Business, Financial Services Business, and Power product and Other Businesses. The stock currently has a dividend yield of 2%. HMC has a PE ratio of 9. Currently there are 2 analysts that rate Honda Motor a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Honda Motor has been 617,700 shares per day over the past 30 days. Honda has a market cap of $56.2 billion and is part of the consumer goods sector and automotive industry. Shares are up 6.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Honda Motor as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 6.0%. Since the same quarter one year prior, revenues slightly increased by 5.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.95, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.83 is somewhat weak and could be cause for future problems.
  • HONDA MOTOR CO LTD 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. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, HONDA MOTOR CO LTD reported lower earnings of $2.36 versus $3.10 in the prior year. This year, the market expects an improvement in earnings ($2.41 versus $2.36).
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Automobiles industry and the overall market on the basis of return on equity, HONDA MOTOR CO LTD has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • The gross profit margin for HONDA MOTOR CO LTD is rather low; currently it is at 16.31%. It has decreased significantly from the same period last year. Along with this, the net profit margin of 2.08% trails that of the industry average.

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