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Trade-Ideas LLC identified
) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Tenaris as such a stock due to the following factors:
- TS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $66.2 million.
- TS has traded 247,968 shares today.
- TS is trading at 2.28 times the normal volume for the stock at this time of day.
- TS crossed above its 200-day simple moving average.
'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. 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 on. 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 TS:
Tenaris S.A., through its subsidiaries, is engaged in the steel pipe manufacturing and distribution activities. The stock currently has a dividend yield of 1.9%. TS has a PE ratio of 17.2. Currently there is 1 analyst that rates Tenaris a buy, 1 analyst rates it a sell, and 8 rate it a hold.
The average volume for Tenaris has been 1.2 million shares per day over the past 30 days. Tenaris has a market cap of $26.6 billion and is part of the industrial goods sector and industrial industry. Shares are up 1.4% year-to-date as of the close of trading on Friday.
rates Tenaris as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations, growth in earnings per share and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- TS's debt-to-equity ratio is very low at 0.08 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, TS has a quick ratio of 1.83, which demonstrates the ability of the company to cover short-term liquidity needs.
- 44.18% is the gross profit margin for TENARIS SA which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 15.28% is above that of the industry average.
- Net operating cash flow has increased to $427.48 million or 23.33% when compared to the same quarter last year. Despite an increase in cash flow, TENARIS SA's cash flow growth rate is still lower than the industry average growth rate of 48.22%.
- TENARIS SA has improved earnings per share by 9.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TENARIS SA reported lower earnings of $2.62 versus $2.88 in the prior year. This year, the market expects an improvement in earnings ($2.76 versus $2.62).
- TS, with its decline in revenue, underperformed when compared the industry average of 10.6%. Since the same quarter one year prior, revenues slightly dropped by 3.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full Tenaris Ratings Report.