Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Visteon as such a stock due to the following factors:
- VC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $36.5 million.
- VC has traded 140,223 shares today.
- VC is trading at 11.50 times the normal volume for the stock at this time of day.
- VC is trading at a new low 4.05% 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 VC:
Visteon Corporation designs, engineers, and manufactures electronics products for original equipment vehicle manufacturers worldwide. It operates through Electronics and Other segments. VC has a PE ratio of 76. Currently there are 5 analysts that rate Visteon a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Visteon has been 617,600 shares per day over the past 30 days. Visteon has a market cap of $2.4 billion and is part of the consumer goods sector and automotive industry. The stock has a beta of 0.98 and a short float of 6.8% with 3.40 days to cover. Shares are down 39.6% year-to-date as of the close of trading on Wednesday.
rates Visteon as a
. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and weak operating cash flow.
Highlights from the ratings report include:
- VISTEON CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, VISTEON CORP turned its bottom line around by earning $0.35 versus -$2.15 in the prior year. This year, the market expects an improvement in earnings ($3.51 versus $0.35).
- The debt-to-equity ratio is somewhat low, currently at 0.65, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, VC has a quick ratio of 1.58, which demonstrates the ability of the company to cover short-term liquidity needs.
- VC, with its decline in revenue, slightly underperformed the industry average of 2.8%. Since the same quarter one year prior, revenues slightly dropped by 1.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- VC's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 30.27%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
- 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 Auto Components industry. The net income has significantly decreased by 62.0% when compared to the same quarter one year ago, falling from $50.00 million to $19.00 million.
- You can view the full Visteon Ratings Report.