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
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Triumph Group as such a stock due to the following factors:
- TGI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.8 million.
- TGI has traded 415,414 shares today.
- TGI is trading at 35.17 times the normal volume for the stock at this time of day.
- TGI is trading at a new low 15.01% 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 TGI:
Triumph Group, Inc., through its subsidiaries, is engaged in the design, engineering, manufacture, repair, overhaul, and distribution of aero structures, aircraft components, accessories, subassemblies, and systems worldwide. The stock currently has a dividend yield of 0.2%. TGI has a PE ratio of 11.9. Currently there are 9 analysts that rate Triumph Group a buy, 1 analyst rates it a sell, and 3 rate it a hold.
The average volume for Triumph Group has been 392,200 shares per day over the past 30 days. Triumph Group has a market cap of $3.2 billion and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 0.93 and a short float of 1.8% with 2.00 days to cover. Shares are down 8.2% year-to-date as of the close of trading on Wednesday.
rates Triumph Group as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, attractive valuation levels, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- TGI's revenue growth has slightly outpaced the industry average of 0.5%. Since the same quarter one year prior, revenues slightly increased by 2.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Aerospace & Defense industry. The net income increased by 36.2% when compared to the same quarter one year prior, rising from $49.52 million to $67.45 million.
- Net operating cash flow has significantly increased by 878.15% to $310.47 million when compared to the same quarter last year. In addition, TRIUMPH GROUP INC has also vastly surpassed the industry average cash flow growth rate of -21.80%.
- TRIUMPH GROUP INC has improved earnings per share by 40.4% 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, TRIUMPH GROUP INC reported lower earnings of $3.91 versus $5.66 in the prior year. This year, the market expects an improvement in earnings ($5.82 versus $3.91).
- You can view the full Triumph Group Ratings Report.