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 TRW Automotive Holdings ( TRW) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified TRW Automotive Holdings as such a stock due to the following factors:

  • TRW has 13x the normal benchmarked social activity for this time of the day compared to its average of 1.19 mentions/day.
  • TRW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $193.3 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on TRW:

TRW Automotive Holdings Corp., through its subsidiaries, designs, manufactures, and sells automotive systems, modules, and components to automotive original equipment manufacturers (OEMs) and related aftermarkets. TRW has a PE ratio of 26. Currently there are 2 analysts that rate TRW Automotive Holdings a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for TRW Automotive Holdings has been 905,200 shares per day over the past 30 days. TRW Automotive has a market cap of $12.2 billion and is part of the consumer goods sector and automotive industry. The stock has a beta of 0.64 and a short float of 0.9% with 0.52 days to cover. Shares are up 2.6% year-to-date as of the close of trading on Wednesday.

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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 increase in net income, solid stock price performance, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Auto Components industry. The net income increased by 83.9% when compared to the same quarter one year prior, rising from $199.00 million to $366.00 million.
  • Powered by its strong earnings growth of 86.30% and other important driving factors, this stock has surged by 32.46% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • TRW AUTOMOTIVE HOLDINGS CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. 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, TRW AUTOMOTIVE HOLDINGS CORP reported lower earnings of $2.34 versus $7.88 in the prior year. This year, the market expects an improvement in earnings ($7.90 versus $2.34).
  • The current debt-to-equity ratio, 0.39, 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 0.88 is somewhat weak and could be cause for future problems.
  • TRW, with its decline in revenue, slightly underperformed the industry average of 4.6%. Since the same quarter one year prior, revenues slightly dropped by 6.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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