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.

Trade-Ideas LLC identified

CNH Industrial

(

CNHI

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified CNH Industrial as such a stock due to the following factors:

  • CNHI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.9 million.
  • CNHI traded 144,980 shares today in the pre-market hours as of 9:17 AM, representing 10.4% of its average daily volume.

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More details on CNHI:

CNH Industrial N.V. designs, produces, markets, sells, and finances agricultural and construction equipment, trucks, commercial vehicles, buses, and specialty vehicles, engines, transmissions, and axles worldwide. The stock currently has a dividend yield of 2.4%. CNHI has a PE ratio of 17. Currently there are no analysts that rate CNH Industrial a buy, 2 analysts rate it a sell, and 4 rate it a hold.

The average volume for CNH Industrial has been 1.4 million shares per day over the past 30 days. CNH Industrial has a market cap of $12.4 billion and is part of the industrial goods sector and industrial industry. Shares are up 11% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates CNH Industrial as a

sell

. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk, poor profit margins and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • 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 Machinery industry. The net income has significantly decreased by 78.0% when compared to the same quarter one year ago, falling from $100.00 million to $22.00 million.
  • The debt-to-equity ratio is very high at 5.42 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
  • The gross profit margin for CNH INDUSTRIAL NV is rather low; currently it is at 21.07%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.39% trails that of the industry average.
  • CNH INDUSTRIAL NV 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. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, CNH INDUSTRIAL NV increased its bottom line by earning $0.52 versus $0.22 in the prior year. For the next year, the market is expecting a contraction of 13.5% in earnings ($0.45 versus $0.52).
  • CNHI, with its decline in revenue, slightly underperformed the industry average of 15.4%. Since the same quarter one year prior, revenues fell by 22.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

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