Trade-Ideas LLC identified

Motorola Solutions

(

MSI

) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Motorola Solutions as such a stock due to the following factors:

  • MSI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $67.4 million.
  • MSI has traded 552,115 shares today.
  • MSI is trading at 3.32 times the normal volume for the stock at this time of day.
  • MSI crossed above its 200-day simple moving average.

'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. 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 on. 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 MSI:

TheStreet Recommends

Motorola Solutions, Inc. provides mission-critical communication infrastructure, devices, software, and services in North America, Latin America, the Asia Pacific, the Middle East, Europe, and Africa. The company operates in two segments, Products and Services. The stock currently has a dividend yield of 2.6%. Currently there are no analysts that rate Motorola Solutions a buy, 3 analysts rate it a sell, and 9 rate it a hold.

The average volume for Motorola Solutions has been 1.2 million shares per day over the past 30 days. Motorola has a market cap of $11.0 billion and is part of the technology sector and telecommunications industry. The stock has a beta of 0.27 and a short float of 3% with 6.05 days to cover. Shares are down 7.7% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Motorola Solutions as a

hold

. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, growth in earnings per share and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and a decline in the stock price during the past year.

Highlights from the ratings report include:

  • Net operating cash flow has significantly increased by 309.79% to $300.00 million when compared to the same quarter last year. In addition, MOTOROLA SOLUTIONS INC has also vastly surpassed the industry average cash flow growth rate of 8.91%.
  • MOTOROLA SOLUTIONS INC reported significant earnings per share improvement in the most recent quarter compared to 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, MOTOROLA SOLUTIONS INC swung to a loss, reporting -$3.12 versus $3.47 in the prior year. This year, the market expects an improvement in earnings ($3.26 versus -$3.12).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 4.9%. Since the same quarter one year prior, revenues slightly dropped by 1.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • MSI is off 5.43% from its price level of one year ago, reflecting the general market trend and ignoring their higher earnings per share compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Communications Equipment industry average. The net income has decreased by 22.4% when compared to the same quarter one year ago, dropping from $147.00 million to $114.00 million.

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