Hillenbrand (HI): Today's Weak On High 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.

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

  • HI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.2 million.
  • HI has traded 51,687 shares today.
  • HI is trading at 2.83 times the normal volume for the stock at this time of day.
  • HI is trading at a new low 3.07% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in HI with the Ticky from Trade-Ideas. See the FREE profile for HI NOW at Trade-Ideas

More details on HI:

Hillenbrand, Inc., a diversified industrial company, makes and sells business-to-business products and services for various industries worldwide. The company operates in two segments, Process Equipment Group and Batesville. The stock currently has a dividend yield of 2.5%. HI has a PE ratio of 17. Currently there are 2 analysts that rate Hillenbrand a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Hillenbrand has been 258,800 shares per day over the past 30 days. Hillenbrand has a market cap of $2.0 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.19 and a short float of 3% with 3.84 days to cover. Shares are down 8.1% year-to-date as of the close of trading on Thursday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Hillenbrand as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, reasonable valuation levels and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 10.5%. Since the same quarter one year prior, revenues slightly increased by 4.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • HILLENBRAND INC has improved earnings per share by 43.8% 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, HILLENBRAND INC increased its bottom line by earning $1.71 versus $1.01 in the prior year. This year, the market expects an improvement in earnings ($2.10 versus $1.71).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Machinery industry. The net income increased by 45.3% when compared to the same quarter one year prior, rising from $20.30 million to $29.50 million.
  • 38.51% is the gross profit margin for HILLENBRAND INC 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 7.34% trails the industry average.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%