Trade-Ideas LLC identified

Sensata Technologies Holding N.V

(

ST

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Sensata Technologies Holding N.V as such a stock due to the following factors:

  • ST has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $45.3 million.
  • ST has traded 119,805 shares today.
  • ST is trading at 2.24 times the normal volume for the stock at this time of day.
  • ST is trading at a new high 3.04% 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 ST:

Sensata Technologies Holding N.V., through its subsidiaries, develops, manufactures, and sells sensors and controls. It operates in two segments, Performance Sensing and Sensing Solutions. ST has a PE ratio of 18. Currently there are 7 analysts that rate Sensata Technologies Holding N.V a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Sensata Technologies Holding N.V has been 1.8 million shares per day over the past 30 days. Sensata Technologies Holding N.V has a market cap of $6.4 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.41 and a short float of 3.2% with 4.87 days to cover. Shares are down 19.3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Sensata Technologies Holding N.V as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 21.0%. Since the same quarter one year prior, revenues slightly increased by 3.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • SENSATA TECHNOLOGIES HLDG NV 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 two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, SENSATA TECHNOLOGIES HLDG NV increased its bottom line by earning $2.03 versus $1.65 in the prior year. This year, the market expects an improvement in earnings ($2.86 versus $2.03).
  • 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 Electrical Equipment industry and the overall market on the basis of return on equity, SENSATA TECHNOLOGIES HLDG NV has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • The debt-to-equity ratio is very high at 2.18 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, ST maintains a poor quick ratio of 0.94, which illustrates the inability to avoid short-term cash problems.

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