Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a weak 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 $6.0 million.
- TWI has traded 53,130 shares today.
- TWI is trading at 4.14 times the normal volume for the stock at this time of day.
- TWI is trading at a new low 3.03% 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 TWI:
Titan International, Inc., together with its subsidiaries, manufactures and sells wheels, tires, and undercarriage systems and components for off-highway vehicles used in the agricultural, earthmoving/construction, and consumer markets in the United States and internationally. The stock currently has a dividend yield of 0.2%. Currently there is 1 analyst that rates Titan International a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Titan International has been 485,600 shares per day over the past 30 days. Titan International has a market cap of $687.7 million and is part of the industrial goods sector and industrial industry. The stock has a beta of 2.96 and a short float of 20.9% with 19.45 days to cover. Shares are down 30.2% year-to-date as of the close of trading on Monday.
rates Titan International as a
. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.
Highlights from the ratings report include:
- The debt-to-equity ratio is somewhat low, currently at 0.78, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.26, which illustrates the ability to avoid short-term cash problems.
- TWI, with its decline in revenue, slightly underperformed the industry average of 4.2%. Since the same quarter one year prior, revenues fell by 11.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The share price of TITAN INTERNATIONAL INC has not done very well: it is down 12.81% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The gross profit margin for TITAN INTERNATIONAL INC is rather low; currently it is at 15.36%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -3.91% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to $25.06 million or 61.63% 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.
- You can view the full Titan International Ratings Report.