Today's Pre-Market Mover With Heavy Volume: TRW Automotive Holdings (TRW)

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

  • TRW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $100.1 million.
  • TRW traded 107,650 shares today in the pre-market hours as of 8:58 AM, representing 10.8% of its average daily volume.

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More details on TRW:

TRW Automotive Holdings Corp., together with its subsidiaries, supplies automotive systems, modules, and components to automotive original equipment manufacturers (OEMs) and related aftermarkets. TRW has a PE ratio of 12.1. Currently there are 2 analysts that rate TRW Automotive Holdings a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for TRW Automotive Holdings has been 769,400 shares per day over the past 30 days. TRW Automotive has a market cap of $11.4 billion and is part of the consumer goods sector and automotive industry. The stock has a beta of 1.03 and a short float of 0.9% with 1.02 days to cover. Shares are up 0.3% 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 TRW Automotive Holdings as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, reasonable valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 41.30% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, TRW should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Net operating cash flow has increased to $194.00 million or 31.97% when compared to the same quarter last year. Despite an increase in cash flow, TRW AUTOMOTIVE HOLDINGS CORP's cash flow growth rate is still lower than the industry average growth rate of 60.39%.
  • The current debt-to-equity ratio, 0.40, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.85 is somewhat weak and could be cause for future problems.
  • TRW AUTOMOTIVE HOLDINGS CORP reported flat earnings per share in the most recent quarter. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, TRW AUTOMOTIVE HOLDINGS CORP increased its bottom line by earning $7.88 versus $7.84 in the prior year. For the next year, the market is expecting a contraction of 2.0% in earnings ($7.72 versus $7.88).

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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