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.
Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Trinity Industries as such a stock due to the following factors:
- TRN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $55.7 million.
- TRN has traded 414,728 shares today.
- TRN is trading at 2.59 times the normal volume for the stock at this time of day.
- TRN is trading at a new low 3.01% 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 TRN:
Trinity Industries, Inc. provides various products and services for the energy, transportation, chemical, and construction sectors in the United States and internationally. The stock currently has a dividend yield of 1.4%. TRN has a PE ratio of 8. Currently there are 7 analysts that rate Trinity Industries a buy, 1 analyst rates it a sell, and 1 rates it a hold.
The average volume for Trinity Industries has been 2.6 million shares per day over the past 30 days. Trinity has a market cap of $4.7 billion and is part of the services sector and transportation industry. The stock has a beta of 1.32 and a short float of 13.1% with 10.00 days to cover. Shares are up 8.3% year-to-date as of the close of trading on Wednesday.
rates Trinity Industries as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, notable return on equity and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 11.3%. Since the same quarter one year prior, revenues rose by 11.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Machinery industry and the overall market on the basis of return on equity, TRINITY INDUSTRIES has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- TRINITY INDUSTRIES's earnings per share declined by 20.7% 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, TRINITY INDUSTRIES increased its bottom line by earning $4.20 versus $2.34 in the prior year. This year, the market expects an improvement in earnings ($4.47 versus $4.20).
- Even though the current debt-to-equity ratio is 1.11, it is still below the industry average, suggesting that this level of debt is acceptable within the Machinery industry.
- You can view the full Trinity Industries Ratings Report.