Trade-Ideas LLC identified

Pentair

(

PNR

) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Pentair as such a stock due to the following factors:

  • PNR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $61.9 million.
  • PNR has traded 153,210 shares today.
  • PNR traded in a range 207.7% of the normal price range with a price range of $2.41.
  • PNR traded below its daily resistance level (quality: 6 days, meaning that the stock is crossing a resistance level set by the last 6 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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More details on PNR:

Pentair plc operates as a diversified industrial manufacturing company in the United States, Europe, and internationally. The company operates through Valves & Controls, Technical Solutions, Flow & Filtration Solutions, and Water Quality Systems segments. The stock currently has a dividend yield of 2.3%. PNR has a PE ratio of 159. Currently there are 2 analysts that rate Pentair a buy, 1 analyst rates it a sell, and 14 rate it a hold.

The average volume for Pentair has been 1.5 million shares per day over the past 30 days. Pentair has a market cap of $10.3 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.44 and a short float of 7.5% with 10.71 days to cover. Shares are up 13.3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Pentair as a

hold

. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • Net operating cash flow has slightly increased to $343.40 million or 5.66% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -11.57%.
  • 38.50% is the gross profit margin for PENTAIR PLC which we consider to be strong. 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 -25.74% is in-line with the industry average.
  • Despite the weak revenue results, PNR has outperformed against the industry average of 19.4%. Since the same quarter one year prior, revenues slightly dropped by 2.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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 475.2% when compared to the same quarter one year ago, falling from $120.80 million to -$453.30 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Machinery industry and the overall market, PENTAIR PLC's return on equity significantly trails that of both the industry average and the S&P 500.

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