Trade-Ideas LLC identified

Rockwell Collins

(

COL

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

  • COL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $48.9 million.
  • COL has traded 120,837 shares today.
  • COL is trading at 5.58 times the normal volume for the stock at this time of day.
  • COL is trading at a new low 3.00% 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 COL:

TST Recommends

Rockwell Collins, Inc. designs, produces, and supports communications and aviation systems for commercial and military customers worldwide. The company operates through three segments: Commercial Systems, Government Systems, and Information Management Services. The stock currently has a dividend yield of 1.5%. COL has a PE ratio of 17. Currently there are 11 analysts that rate Rockwell Collins a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Rockwell Collins has been 721,600 shares per day over the past 30 days. Rockwell Collins has a market cap of $11.4 billion and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 0.61 and a short float of 4.1% with 8.42 days to cover. Shares are up 5.2% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Rockwell Collins as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, expanding profit margins, increase in net income and good cash flow from operations. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • COL's revenue growth has slightly outpaced the industry average of 1.5%. Since the same quarter one year prior, revenues slightly increased by 2.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Aerospace & Defense industry average. The net income increased by 12.7% when compared to the same quarter one year prior, going from $158.00 million to $178.00 million.
  • 40.06% is the gross profit margin for ROCKWELL COLLINS INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 13.76% is above that of the industry average.
  • Net operating cash flow has increased to $209.00 million or 20.11% when compared to the same quarter last year. Despite an increase in cash flow, ROCKWELL COLLINS INC's cash flow growth rate is still lower than the industry average growth rate of 35.51%.

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