Trade-Ideas: Trina Solar (TSL) Is Today's

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 Trina Solar ( TSL) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Trina Solar as such a stock due to the following factors:

  • TSL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $71.2 million.
  • TSL has traded 8.1 million shares today.
  • TSL is down 3% today.
  • TSL was up 8.9% yesterday.

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More details on TSL:

Trina Solar Limited, an integrated solar-power products manufacturer, engages in the design, development, manufacture, and sale of photovoltaic (PV) modules worldwide. The company provides mono- and multi-crystalline silicon ingots, wafers, cells, and related products. Currently there are 2 analysts that rate Trina Solar a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Trina Solar has been 3.9 million shares per day over the past 30 days. Trina Solar has a market cap of $741.4 million and is part of the technology sector and electronics industry.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Trina Solar as a sell. Among the areas we feel are negative, one of the most important has been poor profit margins.

Highlights from the ratings report include:
  • The gross profit margin for TRINA SOLAR LTD is currently extremely low, coming in at 11.62%. Regardless of TSL's low profit margin, it has managed to increase from the same period last year.
  • TRINA SOLAR LTD 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, TRINA SOLAR LTD reported poor results of -$3.76 versus -$0.58 in the prior year. This year, the market expects an improvement in earnings (-$1.59 versus -$3.76).
  • This stock has increased by 97.89% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in TSL do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
  • The revenue growth greatly exceeded the industry average of 13.4%. Since the same quarter one year prior, revenues rose by 27.4%. Growth in the company's revenue appears to have helped boost the earnings per share.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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