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 $4.7 million.
  • TWI has traded 126,225 shares today.
  • TWI is trading at 4.48 times the normal volume for the stock at this time of day.
  • TWI is trading at a new high 4.09% 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, and undercarriage systems and components for off-highway vehicles in the United States and internationally. The stock currently has a dividend yield of 0.4%. Currently there are 2 analysts that rate Titan International a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Titan International has been 615,600 shares per day over the past 30 days. Titan International has a market cap of $286.8 million and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.81 and a short float of 7.8% with 3.48 days to cover. Shares are down 56.3% year-to-date as of the close of trading on Monday.

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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 disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and poor profit margins.

Highlights from the ratings report include:

  • 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.
  • Net operating cash flow has decreased to $14.81 million or 40.91% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • TWI's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 32.86%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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.
  • The gross profit margin for TITAN INTERNATIONAL INC is rather low; currently it is at 18.28%. Regardless of TWI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 1.80% trails the industry average.
  • TWI, with its decline in revenue, slightly underperformed the industry average of 19.8%. Since the same quarter one year prior, revenues fell by 28.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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