Trade-Ideas LLC identified

Stoneridge

(

SRI

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

  • SRI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.2 million.
  • SRI has traded 86,839 shares today.
  • SRI is trading at 10.56 times the normal volume for the stock at this time of day.
  • SRI is trading at a new low 5.25% 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 SRI:

Stoneridge, Inc. designs and manufactures engineered electrical and electronic components, modules, and systems for the automotive, commercial, motorcycle, off-highway, and agricultural vehicle markets in North America, South America, Europe, and internationally. SRI has a PE ratio of 17. Currently there are 2 analysts that rate Stoneridge a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Stoneridge has been 153,000 shares per day over the past 30 days. Stoneridge has a market cap of $466.8 million and is part of the consumer goods sector and automotive industry. The stock has a beta of 1.08 and a short float of 2.9% with 1.95 days to cover. Shares are up 13.3% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Stoneridge as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, notable return on equity 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:

  • Powered by its strong earnings growth of 188.88% and other important driving factors, this stock has surged by 39.32% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SRI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • STONERIDGE INC 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. During the past fiscal year, STONERIDGE INC turned its bottom line around by earning $0.83 versus -$1.41 in the prior year. This year, the market expects an improvement in earnings ($1.31 versus $0.83).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Auto Components industry. The net income increased by 208.8% when compared to the same quarter one year prior, rising from $2.34 million to $7.24 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Auto Components industry and the overall market, STONERIDGE INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • Net operating cash flow has significantly increased by 126.45% to $1.13 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 85.46%.

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