Trade-Ideas LLC identified

Textainer Group Holdings



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

  • TGH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.5 million.
  • TGH has traded 170,332 shares today.
  • TGH is trading at 6.29 times the normal volume for the stock at this time of day.
  • TGH is trading at a new low 3.02% 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 TGH:

Textainer Group Holdings Limited, together with its subsidiaries, engages in the purchase, ownership, management, leasing, and disposal of a fleet of intermodal containers worldwide. It operates through three segments: Container Ownership, Container Management, and Container Resale. The stock currently has a dividend yield of 6.5%. TGH has a PE ratio of 5. Currently there is 1 analyst that rates Textainer Group Holdings a buy, 1 analyst rates it a sell, and 7 rate it a hold.

The average volume for Textainer Group Holdings has been 533,300 shares per day over the past 30 days. Textainer Group has a market cap of $840.4 million and is part of the services sector and diversified services industry. The stock has a beta of 1.84 and a short float of 13.3% with 7.45 days to cover. Shares are down 59.4% year-to-date as of the close of trading on Friday.

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TheStreet Quant Ratings

rates Textainer Group Holdings as a


. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and generally higher debt management risk.

Highlights from the ratings report include:

  • Net operating cash flow has slightly increased to $100.37 million or 3.65% when compared to the same quarter last year. In addition, TEXTAINER GROUP HOLDINGS LTD has also modestly surpassed the industry average cash flow growth rate of 2.19%.
  • The gross profit margin for TEXTAINER GROUP HOLDINGS LTD is currently very high, coming in at 87.11%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 7.29% trails the industry average.
  • TGH, with its decline in revenue, slightly underperformed the industry average of 2.6%. Since the same quarter one year prior, revenues slightly dropped by 6.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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. In comparison to the other companies in the Trading Companies & Distributors industry and the overall market, TEXTAINER GROUP HOLDINGS LTD's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • 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 Trading Companies & Distributors industry. The net income has significantly decreased by 81.8% when compared to the same quarter one year ago, falling from $54.30 million to $9.89 million.

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