Trade-Ideas LLC identified
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) 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 $48.0 million.
- VC has traded 361,498 shares today.
- VC traded in a range 292.1% of the normal price range with a price range of $6.26.
- VC traded below its daily resistance level (quality: 5 days, meaning that the stock is crossing a resistance level set by the last 5 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on VC:
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 15. 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 815,800 shares per day over the past 30 days. Visteon has a market cap of $2.8 billion and is part of the consumer goods sector and automotive industry. The stock has a beta of 0.85 and a short float of 4.1% with 2.50 days to cover. Shares are down 39.7% 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 revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and poor profit margins.
Highlights from the ratings report include:
- VC's revenue growth has slightly outpaced the industry average of 6.2%. 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.
- 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 ($2.53 versus -$1.63).
- 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 33.50%, 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.
- 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. In comparison to the other companies in the Auto Components industry and the overall market, VISTEON CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- You can view the full Visteon Ratings Report.