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

  • TYC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $89.0 million.
  • TYC has traded 467,344 shares today.
  • TYC is trading at 6.54 times the normal volume for the stock at this time of day.
  • TYC is trading at a new low 4.08% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in TYC with the Ticky from Trade-Ideas. See the FREE profile for TYC NOW at Trade-Ideas

More details on TYC:

Tyco International plc provides security products and services, fire detection and suppression products and services, and life safety products worldwide. The stock currently has a dividend yield of 2.2%. TYC has a PE ratio of 3. Currently there are 5 analysts that rate Tyco International a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Tyco International has been 4.0 million shares per day over the past 30 days. Tyco International has a market cap of $15.6 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.90 and a short float of 1.2% with 1.73 days to cover. Shares are up 14.5% year-to-date as of the close of trading on Monday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Tyco International as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Net operating cash flow has significantly increased by 98.95% to $191.00 million when compared to the same quarter last year. In addition, TYCO INTERNATIONAL PLC has also vastly surpassed the industry average cash flow growth rate of 1.13%.
  • 40.45% is the gross profit margin for TYCO INTERNATIONAL PLC 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 3.19% trails the industry average.
  • The current debt-to-equity ratio, 0.57, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that TYC's debt-to-equity ratio is low, the quick ratio, which is currently 0.63, displays a potential problem in covering short-term cash needs.
  • TYCO INTERNATIONAL PLC 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 suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, TYCO INTERNATIONAL PLC reported lower earnings of $1.44 versus $1.69 in the prior year. This year, the market expects an improvement in earnings ($2.09 versus $1.44).
  • TYC, with its decline in revenue, slightly underperformed the industry average of 2.2%. Since the same quarter one year prior, revenues slightly dropped by 4.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.