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 International Game Technology ( IGT) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified International Game Technology as such a stock due to the following factors:

  • IGT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $45.2 million.
  • IGT has traded 516,612 shares today.
  • IGT is trading at 4.88 times the normal volume for the stock at this time of day.
  • IGT is trading at a new low 3.00% 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 IGT:

International Game Technology, a gaming company, designs, develops, manufactures, and markets casino-style gaming equipment, systems technology, and game content for land-based and online markets worldwide. The stock currently has a dividend yield of 2.6%. IGT has a PE ratio of 17.5. Currently there are no analysts that rate International Game Technology a buy, 1 analyst rates it a sell, and 11 rate it a hold.

The average volume for International Game Technology has been 4.0 million shares per day over the past 30 days. International Game Technology has a market cap of $4.1 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.52 and a short float of 2.8% with 2.44 days to cover. Shares are down 7.8% 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 International Game Technology as a hold. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and disappointing return on equity.

Highlights from the ratings report include:
  • INTL GAME TECHNOLOGY has improved earnings per share by 16.0% 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 two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, INTL GAME TECHNOLOGY increased its bottom line by earning $1.02 versus $0.87 in the prior year. This year, the market expects an improvement in earnings ($1.03 versus $1.02).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry average. The net income increased by 9.7% when compared to the same quarter one year prior, going from $65.70 million to $72.10 million.
  • Despite the current debt-to-equity ratio of 1.71, it is still below the industry average, suggesting that this level of debt is acceptable within the Hotels, Restaurants & Leisure industry. Despite the fact that IGT's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.55 is high and demonstrates strong liquidity.
  • IGT has underperformed the S&P 500 Index, declining 8.14% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • Net operating cash flow has decreased to $126.60 million or 17.09% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, INTL GAME TECHNOLOGY has marginally lower results.

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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