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 Honda Motor ( HMC) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Honda Motor as such a stock due to the following factors:
- HMC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.6 million.
- HMC traded 525,500 shares today in the pre-market hours as of 8:54 AM, representing 107.8% of its average daily volume.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in HMC with the Ticky from Trade-Ideas. See the FREE profile for HMC NOW at Trade-Ideas More details on HMC: Honda Motor Co., Ltd. engages in the manufacture and sale of motorcycles, automobiles, and power products. It operates through four segments: Motorcycle Business, Automobile Business, Financial Services Business, and Power Product and Other Businesses. The stock currently has a dividend yield of 2%. HMC has a PE ratio of 10.1. Currently there are 3 analysts that rate Honda Motor a buy, no analysts rate it a sell, and none rate it a hold. The average volume for Honda Motor has been 326,100 shares per day over the past 30 days. Honda has a market cap of $64.7 billion and is part of the consumer goods sector and automotive industry. Shares are down 13.1% year-to-date as of the close of trading on Wednesday. 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 Honda Motor as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Highlights from the ratings report include:
- HONDA MOTOR CO LTD has improved earnings per share by 13.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, HONDA MOTOR CO LTD increased its bottom line by earning $2.17 versus $1.41 in the prior year. This year, the market expects an improvement in earnings ($3.29 versus $2.17).
- Net operating cash flow has significantly increased by 113.34% to $3,765.72 million when compared to the same quarter last year. In addition, HONDA MOTOR CO LTD has also vastly surpassed the industry average cash flow growth rate of 30.53%.
- The debt-to-equity ratio is somewhat low, currently at 0.98, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.83 is somewhat weak and could be cause for future problems.
- Despite the weak revenue results, HMC has outperformed against the industry average of 14.1%. Since the same quarter one year prior, revenues slightly dropped by 0.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Automobiles industry average. The net income increased by 12.9% when compared to the same quarter one year prior, going from $1,095.39 million to $1,236.18 million.
- You can view the full Honda Motor 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.