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

  • PNR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $109.6 million.
  • PNR has traded 237,882 shares today.
  • PNR is trading at 3.35 times the normal volume for the stock at this time of day.
  • PNR is trading at a new low 3.02% 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 PNR:

Pentair plc operates as a diversified industrial manufacturing company in the United States, Europe, and internationally. The company operates through Valves & Controls, Technical Solutions, Flow & Filtration Solutions, and Water Quality Systems segments. The stock currently has a dividend yield of 2.3%. PNR has a PE ratio of 17. Currently there is 1 analyst that rates Pentair a buy, 1 analyst rates it a sell, and 18 rate it a hold.

The average volume for Pentair has been 1.4 million shares per day over the past 30 days. Pentair has a market cap of $9.9 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.26 and a short float of 5.5% with 4.74 days to cover. Shares are down 18.1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Pentair as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, largely solid financial position with reasonable debt levels by most measures, notable return on equity 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:
  • PENTAIR PLC's earnings per share improvement from the most recent quarter was slightly positive. 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, PENTAIR PLC increased its bottom line by earning $3.14 versus $2.51 in the prior year. This year, the market expects an improvement in earnings ($3.87 versus $3.14).
  • The debt-to-equity ratio is somewhat low, currently at 0.72, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.98 is somewhat weak and could be cause for future problems.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Machinery industry and the overall market on the basis of return on equity, PENTAIR PLC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • 37.84% is the gross profit margin for PENTAIR PLC which we consider to be strong. Regardless of PNR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PNR's net profit margin of 8.89% compares favorably to the industry average.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 14.6%. Since the same quarter one year prior, revenues slightly dropped by 9.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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