Trade-Ideas LLC identified

TimkenSteel

(

TMST

) as a strong 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 $8.1 million.
  • TMST has traded 234,837 shares today.
  • TMST is trading at 6.30 times the normal volume for the stock at this time of day.
  • TMST is trading at a new high 26.02% 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 TMST:

TST 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 5.9%. Currently there is 1 analyst that rates TimkenSteel a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for TimkenSteel has been 843,000 shares per day over the past 30 days. TimkenSteel has a market cap of $220.1 million and is part of the basic materials sector and metals & mining industry. Shares are down 38.5% 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 feeble growth in its earnings per share, deteriorating net income, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • 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 178.0% in earnings (-$1.77 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 219.8% when compared to the same quarter one year ago, falling from $25.70 million to -$30.80 million.
  • Net operating cash flow has significantly decreased to $1.60 million or 87.69% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 84.90%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 223.21% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • TMST, with its decline in revenue, slightly underperformed the industry average of 46.1%. Since the same quarter one year prior, revenues fell by 46.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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