Trade-Ideas LLC identified

TimkenSteel

(

TMST

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

  • TMST has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.7 million.
  • TMST has traded 59,644 shares today.
  • TMST is trading at 2.19 times the normal volume for the stock at this time of day.
  • TMST is trading at a new low 6.07% 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 TMST:

TheStreet Recommends

TimkenSteel Corporation manufactures and sells alloy steel, and carbon and micro-alloy steel products. It operates in two segments, Industrial & Mobile, and Energy & Distribution. The stock currently has a dividend yield of 5.1%. TMST has a PE ratio of 2. Currently there is 1 analyst that rates TimkenSteel a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for TimkenSteel has been 583,300 shares per day over the past 30 days. TimkenSteel has a market cap of $486.6 million and is part of the basic materials sector and metals & mining industry. Shares are down 71.1% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates TimkenSteel as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, feeble growth in its earnings per share, deteriorating net income and poor profit margins.

Highlights from the ratings report include:

  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 68.16%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 187.09% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
  • TIMKENSTEEL CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. For the next year, the market is expecting a contraction of 180.2% in earnings (-$1.82 versus $2.27).
  • 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 Metals & Mining industry. The net income has significantly decreased by 184.7% when compared to the same quarter one year ago, falling from $28.70 million to -$24.30 million.
  • The gross profit margin for TIMKENSTEEL CORP is currently extremely low, coming in at 4.67%. It has decreased significantly from the same period last year.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 46.5%. Since the same quarter one year prior, revenues fell by 37.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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