Heavy Trading On ABB (ABB) Before Market Open

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 $50.7 million.
  • ABB traded 476,900 shares today in the pre-market hours as of 8:44 AM, representing 24% of its average daily volume.

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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 2.8%. ABB has a PE ratio of 21.5. Currently there are 3 analysts that rate ABB a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for ABB has been 1.4 million shares per day over the past 30 days. ABB has a market cap of $58.2 billion and is part of the industrial goods sector and industrial industry. Shares are down 4.6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates ABB as a buy. 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, solid stock price performance, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • ABB's revenue growth has slightly outpaced the industry average of 7.4%. Since the same quarter one year prior, revenues slightly increased by 8.1%. 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, 0.46, 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 1.03, which illustrates the ability to avoid short-term cash problems.
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. 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.
  • Net operating cash flow has significantly increased by 61.58% to $1,241.00 million when compared to the same quarter last year. In addition, ABB LTD has also vastly surpassed the industry average cash flow growth rate of -12.55%.

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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