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

  • TRMB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $37.0 million.
  • TRMB has traded 1.1 million shares today.
  • TRMB is trading at 17.26 times the normal volume for the stock at this time of day.
  • TRMB is trading at a new low 15.02% 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 TRMB:

Trimble Navigation Limited designs and distributes positioning products and applications enabled by global positioning system (GPS), optical, laser, and wireless communications technology. TRMB has a PE ratio of 30.5. Currently there are 8 analysts that rate Trimble Navigation a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Trimble Navigation has been 1.5 million shares per day over the past 30 days. Trimble Navigation has a market cap of $7.8 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.94 and a short float of 3.5% with 6.34 days to cover. Shares are down 12.3% year-to-date as of the close of trading on Thursday.

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 Trimble Navigation 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, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • TRMB's revenue growth has slightly outpaced the industry average of 3.5%. Since the same quarter one year prior, revenues rose by 11.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • TRMB's debt-to-equity ratio is very low at 0.27 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.20, which illustrates the ability to avoid short-term cash problems.
  • TRIMBLE NAVIGATION LTD has improved earnings per share by 38.1% 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. During the past fiscal year, TRIMBLE NAVIGATION LTD increased its bottom line by earning $0.84 versus $0.75 in the prior year. This year, the market expects an improvement in earnings ($1.63 versus $0.84).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 42.6% when compared to the same quarter one year prior, rising from $54.58 million to $77.83 million.
  • The gross profit margin for TRIMBLE NAVIGATION LTD is rather high; currently it is at 59.62%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 12.11% is above that of the industry average.

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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