Trade-Ideas: ExOne (XONE) Is Today's Weak On High Relative Volume Stock

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

  • XONE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.0 million.
  • XONE has traded 117,513 shares today.
  • XONE is trading at 6.08 times the normal volume for the stock at this time of day.
  • XONE is trading at a new low 3.28% 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 XONE:

The ExOne Company manufactures and sells three dimensional printing machines and printing products in the Americas, Europe, and Asia. Currently there are 3 analysts that rate ExOne a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for ExOne has been 495,500 shares per day over the past 30 days. ExOne has a market cap of $221.3 million and is part of the industrial goods sector and industrial industry. Shares are down 74.7% 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 ExOne as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • EXONE CO has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. For the next year, the market is expecting a contraction of 125.5% in earnings (-$1.06 versus -$0.47).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Machinery industry. The net income has significantly decreased by 1887.1% when compared to the same quarter one year ago, falling from -$0.22 million to -$4.45 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 73.75%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 1450.00% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • 35.94% is the gross profit margin for EXONE CO which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, XONE's net profit margin of -46.12% significantly underperformed when compared to the industry average.
  • XONE, with its decline in revenue, underperformed when compared the industry average of 3.0%. Since the same quarter one year prior, revenues fell by 17.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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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