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.

Trade-Ideas LLC identified

Titan International

(

TWI

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Titan International as such a stock due to the following factors:

  • TWI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.1 million.
  • TWI has traded 137,069 shares today.
  • TWI is trading at 5.84 times the normal volume for the stock at this time of day.
  • TWI is trading at a new high 11.03% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 TWI:

Titan International, Inc., together with its subsidiaries, manufactures and sells wheels, tires, and undercarriage systems and components for off-highway vehicles used in the agricultural, earthmoving/construction, and consumer markets in the United States and internationally. The stock currently has a dividend yield of 0.2%. Currently there is 1 analyst that rates Titan International a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Titan International has been 678,200 shares per day over the past 30 days. Titan International has a market cap of $530.7 million and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.96 and a short float of 19.8% with 15.66 days to cover. Shares are down 47.2% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Titan International as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:

  • TITAN INTERNATIONAL INC 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. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, TITAN INTERNATIONAL INC reported lower earnings of $0.60 versus $1.84 in the prior year. For the next year, the market is expecting a contraction of 123.3% in earnings (-$0.14 versus $0.60).
  • 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 212.0% when compared to the same quarter one year ago, falling from $8.09 million to -$9.07 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, TITAN INTERNATIONAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for TITAN INTERNATIONAL INC is currently extremely low, coming in at 14.66%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -2.01% is significantly below that of the industry average.
  • Net operating cash flow has decreased to $34.29 million or 24.76% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, TITAN INTERNATIONAL INC has marginally lower results.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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