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 BT Group ( BT) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified BT Group as such a stock due to the following factors:

  • BT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.6 million.
  • BT traded 34,984 shares today in the pre-market hours as of 8:56 AM, representing 19.1% of its average daily volume.

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More details on BT:

BT Group plc provides communications services worldwide. The company operates through BT Global Services, BT Business, BT Consumer, BT Wholesale, and Openreach segments. The stock currently has a dividend yield of 2.9%. Currently there are 4 analysts that rate BT Group a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for BT Group has been 148,900 shares per day over the past 30 days. BT Group has a market cap of $50.7 billion and is part of the technology sector and telecommunications industry. Shares are up 0.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates BT Group as a hold. The company's strongest point has been its expanding profit margins. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and weak operating cash flow.

Highlights from the ratings report include:
  • BT GROUP PLC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BT GROUP PLC increased its bottom line by earning $4.09 versus $3.60 in the prior year. This year, the market expects an improvement in earnings ($4.36 versus $4.09).
  • BT, with its decline in revenue, underperformed when compared the industry average of 0.9%. Since the same quarter one year prior, revenues fell by 11.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The gross profit margin for BT GROUP PLC is currently lower than what is desirable, coming in at 32.75%. Regardless of BT's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, BT's net profit margin of 10.03% compares favorably to the industry average.
  • 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 Diversified Telecommunication Services industry. The net income has significantly decreased by 33.3% when compared to the same quarter one year ago, falling from $1,025.30 million to $684.38 million.
  • In its most recent trading session, BT has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.