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.

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

  • BIN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.8 million.
  • BIN has traded 83,264 shares today.
  • BIN is trading at 6.57 times the normal volume for the stock at this time of day.
  • BIN is trading at a new low 4.01% 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 BIN:

Progressive Waste Solutions Ltd. operates as a vertically integrated non-hazardous solid waste management company in North America. It operates through Canada, the U.S. Northeast, and the U.S. South segments. The stock currently has a dividend yield of 1.8%. BIN has a PE ratio of 27.0. Currently there are 8 analysts that rate Progressive Waste Solutions a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Progressive Waste Solutions has been 237,900 shares per day over the past 30 days. Progressive Waste has a market cap of $3.3 billion and is part of the industrial goods sector and materials & construction industry. Shares are down 1.3% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Progressive Waste Solutions as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and weak operating cash flow.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 2.8%. Since the same quarter one year prior, revenues slightly increased by 0.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • 39.23% is the gross profit margin for PROGRESSIVE WASTE SOLUTIONS which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 3.75% trails the industry average.
  • Even though the current debt-to-equity ratio is 1.27, it is still below the industry average, suggesting that this level of debt is acceptable within the Commercial Services & Supplies industry. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.79 is weak.
  • Net operating cash flow has decreased to $116.52 million or 10.78% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, PROGRESSIVE WASTE SOLUTIONS has marginally lower results.
  • 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 Commercial Services & Supplies industry. The net income has significantly decreased by 47.8% when compared to the same quarter one year ago, falling from $36.24 million to $18.93 million.

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