Trade-Ideas LLC identified

Ternium

(

TX

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Ternium as such a stock due to the following factors:

  • TX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.1 million.
  • TX has traded 103.4330000000000069348971010185778141021728515625 options contracts today.
  • TX is making at least a new 3-day high.
  • TX has a PE ratio of 15.
  • TX is mentioned 0.29 times per day on StockTwits.
  • TX has not yet been mentioned on StockTwits today.
  • TX is currently in the upper 20% of its 1-year range.
  • TX is in the upper 35% of its 20-day range.
  • TX is in the upper 45% of its 5-day range.
  • TX is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on TX:

Ternium S.A. manufactures and processes various steel products in Mexico, Argentina, Bolivia, Chile, Paraguay, Uruguay, the United States, Central America, Colombia, and internationally. It operates through two segments, Steel and Mining. The stock currently has a dividend yield of 4.6%. TX has a PE ratio of 15. Currently there are 2 analysts that rate Ternium a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Ternium has been 366,500 shares per day over the past 30 days. Ternium has a market cap of $3.9 billion and is part of the basic materials sector and metals & mining industry. Shares are up 56.7% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Ternium as a

hold

. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from the ratings report include:

  • TERNIUM SA -ADR 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 year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, TERNIUM SA -ADR turned its bottom line around by earning $0.05 versus -$4.27 in the prior year. This year, the market expects an improvement in earnings ($1.48 versus $0.05).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 78.6% when compared to the same quarter one year prior, rising from -$589.55 million to -$126.20 million.
  • The current debt-to-equity ratio, 0.38, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that TX's debt-to-equity ratio is low, the quick ratio, which is currently 0.53, displays a potential problem in covering short-term cash needs.
  • After a year of stock price fluctuations, the net result is that TX's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
  • The gross profit margin for TERNIUM SA -ADR is rather low; currently it is at 20.53%. It has decreased from the same quarter the previous year.

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