Trade-Ideas LLC identified

Titan International

(

TWI

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

  • TWI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.4 million.
  • TWI has traded 86,564 shares today.
  • TWI is trading at 6.95 times the normal volume for the stock at this time of day.
  • TWI is trading at a new high 7.15% 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 TWI:

Titan International, Inc., together with its subsidiaries, manufactures and sells wheels, tires, wheel and tire assemblies, and undercarriage systems and components for off-highway vehicles in the United States and internationally. The stock currently has a dividend yield of 0.3%. Currently there is 1 analyst that rates Titan International a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Titan International has been 399,300 shares per day over the past 30 days. Titan International has a market cap of $354.7 million and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.58 and a short float of 7.1% with 7.59 days to cover. Shares are up 67.8% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Titan International as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, generally high debt management risk and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Machinery industry. The net income has significantly decreased by 4044.8% when compared to the same quarter one year ago, falling from $0.23 million to -$9.15 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Machinery industry and the overall market, TITAN INTERNATIONAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for TITAN INTERNATIONAL INC is currently extremely low, coming in at 14.54%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -2.84% is significantly below that of the industry average.
  • Currently the debt-to-equity ratio of 1.52 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Even though the debt-to-equity ratio is weak, TWI's quick ratio is somewhat strong at 1.16, demonstrating the ability to handle short-term liquidity needs.
  • The share price of TITAN INTERNATIONAL INC has not done very well: it is down 24.75% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

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