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 CNH Industrial ( CNHI) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified CNH Industrial as such a stock due to the following factors:

  • CNHI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.7 million.
  • CNHI has traded 15.7612000000000005428546501207165420055389404296875 options contracts today.
  • CNHI is making at least a new 3-day high.
  • CNHI has a PE ratio of 17.
  • CNHI is mentioned 1.68 times per day on StockTwits.
  • CNHI has not yet been mentioned on StockTwits today.
  • CNHI is currently in the upper 20% of its 1-year range.
  • CNHI is in the upper 35% of its 20-day range.
  • CNHI is in the upper 45% of its 5-day range.
  • CNHI is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on CNHI:

CNH Industrial N.V. designs, produces, markets, sells, and finances agricultural and construction equipment, trucks, commercial vehicles, buses, and specialty vehicles, engines, transmissions, and axles worldwide. The stock currently has a dividend yield of 2.5%. CNHI has a PE ratio of 17. Currently there are no analysts that rate CNH Industrial a buy, 2 analysts rate it a sell, and 4 rate it a hold.

The average volume for CNH Industrial has been 1.4 million shares per day over the past 30 days. CNH Industrial has a market cap of $12.1 billion and is part of the industrial goods sector and industrial industry. Shares are up 12.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates CNH Industrial as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • In its most recent trading session, CNHI has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
  • 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 Machinery industry. The net income has significantly decreased by 65.0% when compared to the same quarter one year ago, falling from $354.00 million to $124.00 million.
  • The debt-to-equity ratio is very high at 5.65 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Machinery industry and the overall market, CNH INDUSTRIAL NV's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • The gross profit margin for CNH INDUSTRIAL NV is rather low; currently it is at 21.80%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.86% trails that of the industry average.

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