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.
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) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Cameron International Corporation as such a stock due to the following factors:
- CAM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $156.2 million.
- CAM has traded 10.7 million shares today.
- CAM is trading at 12.13 times the normal volume for the stock at this time of day.
- CAM is trading at a new low 4.03% 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 CAM:
Cameron International Corporation provides flow equipment products, systems, and services worldwide. CAM has a PE ratio of 20.9. Currently there are 17 analysts that rate Cameron International Corporation a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Cameron International Corporation has been 1.7 million shares per day over the past 30 days. Cameron International has a market cap of $16.0 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.57 and a short float of 1.9% with 1.60 days to cover. Shares are up 14% year to date as of the close of trading on Wednesday.
rates Cameron International Corporation as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 6.4%. Since the same quarter one year prior, revenues rose by 17.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The current debt-to-equity ratio, 0.38, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.14, which illustrates the ability to avoid short-term cash problems.
- CAMERON INTERNATIONAL CORP has improved earnings per share by 11.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CAMERON INTERNATIONAL CORP increased its bottom line by earning $3.02 versus $2.09 in the prior year. This year, the market expects an improvement in earnings ($3.65 versus $3.02).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Energy Equipment & Services industry average. The net income increased by 10.7% when compared to the same quarter one year prior, going from $134.00 million to $148.30 million.
- Net operating cash flow has significantly increased by 88.86% to -$22.70 million when compared to the same quarter last year. In addition, CAMERON INTERNATIONAL CORP has also vastly surpassed the industry average cash flow growth rate of 38.41%.
- You can view the full Cameron International Corporation Ratings Report.