Trade-Ideas LLC identified

Visteon

(

VC

) as a strong 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 $72.5 million.
  • VC has traded 215,374 shares today.
  • VC is trading at 8.69 times the normal volume for the stock at this time of day.
  • VC is trading at a new high 4.04% 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 VC:

TheStreet Recommends

Visteon Corporation designs, engineers, and manufactures products for original equipment vehicle manufacturers worldwide. It operates in three segments: Climate, Electronics, and Other. VC has a PE ratio of 23. Currently there are 6 analysts that rate Visteon a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Visteon has been 610,100 shares per day over the past 30 days. Visteon has a market cap of $4.2 billion and is part of the consumer goods sector and automotive industry. The stock has a beta of 0.62 and a short float of 3.3% with 1.30 days to cover. Shares are down 45.8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Visteon as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, compelling growth in net income and growth in earnings per share. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 9.7%. Since the same quarter one year prior, revenues slightly increased by 1.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • VC's debt-to-equity ratio is very low at 0.14 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.73, which clearly demonstrates the ability to cover short-term cash needs.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Auto Components industry. The net income increased by 123.8% when compared to the same quarter one year prior, rising from -$21.00 million to $5.00 million.
  • Net operating cash flow has increased to $70.00 million or 32.07% when compared to the same quarter last year. In addition, VISTEON CORP has also vastly surpassed the industry average cash flow growth rate of -28.92%.
  • VISTEON CORP reported significant earnings per share improvement 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, VISTEON CORP swung to a loss, reporting -$1.63 versus $14.06 in the prior year. This year, the market expects an improvement in earnings ($2.41 versus -$1.63).

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