Trade-Ideas LLC identified

TAL International Group

(

TAL

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

  • TAL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.9 million.
  • TAL has traded 86,847 shares today.
  • TAL is trading at 6.17 times the normal volume for the stock at this time of day.
  • TAL is trading at a new high 3.51% 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 TAL:

TAL International Group, Inc., together with its subsidiaries, leases intermodal transportation equipment and provides maritime container management services worldwide. The company operates in two segments, Equipment Leasing and Equipment Trading. The stock currently has a dividend yield of 13.4%. TAL has a PE ratio of 8. Currently there is 1 analyst that rates TAL International Group a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for TAL International Group has been 296,600 shares per day over the past 30 days. TAL International Group has a market cap of $449.8 million and is part of the services sector and diversified services industry. The stock has a beta of 2.21 and a short float of 3.2% with 3.73 days to cover. Shares are down 17.2% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates TAL International Group as a

hold

. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and generally higher debt management risk.

Highlights from the ratings report include:

  • Net operating cash flow has slightly increased to $95.54 million or 4.69% when compared to the same quarter last year. In addition, TAL INTERNATIONAL GROUP INC has also modestly surpassed the industry average cash flow growth rate of -1.95%.
  • The gross profit margin for TAL INTERNATIONAL GROUP INC is currently very high, coming in at 81.79%. Regardless of TAL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 4.00% trails the industry average.
  • The debt-to-equity ratio is very high at 5.04 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
  • 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. In comparison to the other companies in the Trading Companies & Distributors industry and the overall market, TAL INTERNATIONAL GROUP INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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