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 ABB ( ABB) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified ABB as such a stock due to the following factors:
- ABB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $31.5 million.
- ABB traded 146,300 shares today in the pre-market hours as of 9:00 AM, representing 10.7% of its average daily volume.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in ABB with the Ticky from Trade-Ideas. See the FREE profile for ABB NOW at Trade-Ideas More details on ABB: ABB Ltd provides power and automation technologies for utility and industrial customers worldwide. The stock currently has a dividend yield of 3%. ABB has a PE ratio of 20.1. Currently there are 5 analysts that rate ABB a buy, 1 analyst rates it a sell, and none rate it a hold. The average volume for ABB has been 1.2 million shares per day over the past 30 days. ABB has a market cap of $54.6 billion and is part of the industrial goods sector and industrial industry. Shares are up 14.3% year to date as of the close of trading on Friday. 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 ABB as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Highlights from the ratings report include:
- 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 Electrical Equipment industry average. The net income increased by 16.3% when compared to the same quarter one year prior, going from $656.00 million to $763.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 9.0%. Since the same quarter one year prior, revenues slightly increased by 5.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The current debt-to-equity ratio, 0.50, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.04, which illustrates the ability to avoid short-term cash problems.
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full ABB Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.