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 Cameron International as such a stock due to the following factors:
- CAM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $122.8 million.
- CAM has traded 572,507 shares today.
- CAM is trading at 5.00 times the normal volume for the stock at this time of day.
- CAM is trading at a new low 6.04% 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 CAM:
Cameron International Corporation provides flow equipment products, systems, and services worldwide. CAM has a PE ratio of 12.2. Currently there are 11 analysts that rate Cameron International a buy, no analysts rate it a sell, and 7 rate it a hold.
The average volume for Cameron International has been 3.1 million shares per day over the past 30 days. Cameron International has a market cap of $8.8 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.85 and a short float of 1.8% with 1.16 days to cover. Shares are down 15.5% year-to-date as of the close of trading on Wednesday.
rates Cameron International as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and poor profit margins.
Highlights from the ratings report include:
- CAM's revenue growth has slightly outpaced the industry average of 7.0%. Since the same quarter one year prior, revenues rose by 15.6%. 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 exceeded that of the S&P 500 and greatly outperformed compared to the Energy Equipment & Services industry average. The net income increased by 19.0% when compared to the same quarter one year prior, going from $189.00 million to $225.00 million.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Energy Equipment & Services industry and the overall market on the basis of return on equity, CAMERON INTERNATIONAL CORP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- The gross profit margin for CAMERON INTERNATIONAL CORP is currently lower than what is desirable, coming in at 28.16%. Regardless of CAM's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, CAM's net profit margin of 8.40% compares favorably to the industry average.
- CAM'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 25.20%, 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. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- You can view the full Cameron International Ratings Report.