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

  • BDC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.3 million.
  • BDC has traded 217,774 shares today.
  • BDC is trading at 20.86 times the normal volume for the stock at this time of day.
  • BDC is trading at a new low 19.01% 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 BDC:

Belden Inc. designs, manufactures, and markets signal transmission solutions for use in broadcast, enterprise, and industrial applications worldwide. The stock currently has a dividend yield of 0.3%. BDC has a PE ratio of 106. Currently there are 3 analysts that rate Belden a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Belden has been 272,900 shares per day over the past 30 days. Belden has a market cap of $3.0 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.75 and a short float of 7% with 6.69 days to cover. Shares are down 9.2% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Belden as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 1.9%. Since the same quarter one year prior, revenues rose by 12.2%. 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.
  • 40.39% is the gross profit margin for BELDEN 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 -3.59% is in-line with the industry average.
  • BELDEN INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, BELDEN INC reported lower earnings of $1.69 versus $2.34 in the prior year. This year, the market expects an improvement in earnings ($5.37 versus $1.69).
  • Net operating cash flow has significantly decreased to -$48.21 million or 136.12% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The share price of BELDEN INC has not done very well: it is down 5.49% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.

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