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

  • CCK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $34.6 million.
  • CCK has traded 70,653 shares today.
  • CCK is trading at 4.06 times the normal volume for the stock at this time of day.
  • CCK is trading at a new low 3.00% 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 CCK:

Crown Holdings, Inc. designs, manufactures, and sells packaging products for consumer goods in Americas, Europe, and the Asia Pacific. CCK has a PE ratio of 22. Currently there are 5 analysts that rate Crown Holdings a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Crown Holdings has been 780,800 shares per day over the past 30 days. Crown has a market cap of $7.3 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.63 and a short float of 0.9% with 1.57 days to cover. Shares are up 4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Crown Holdings as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Containers & Packaging industry and the overall market, CROWN HOLDINGS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly increased by 161.90% to $330.00 million when compared to the same quarter last year. In addition, CROWN HOLDINGS INC has also vastly surpassed the industry average cash flow growth rate of -12.00%.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • CROWN HOLDINGS INC's earnings per share declined by 42.6% 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, CROWN HOLDINGS INC increased its bottom line by earning $2.78 versus $2.30 in the prior year. This year, the market expects an improvement in earnings ($3.59 versus $2.78).
  • CCK, with its decline in revenue, underperformed when compared the industry average of 7.7%. Since the same quarter one year prior, revenues slightly dropped by 5.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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