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

  • HMC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $19.6 million.
  • HMC has traded 123,680 shares today.
  • HMC is trading at 2.66 times the normal volume for the stock at this time of day.
  • HMC is trading at a new high 4.02% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 HMC:

Honda Motor Co., Ltd. develops, manufactures, and distributes motorcycles, automobiles, power, and other products worldwide. The company operates through four segments: Motorcycle Business, Automobile Business, Financial Services Business, and Power product and Other Businesses. The stock currently has a dividend yield of 2.5%. HMC has a PE ratio of 7. Currently there are 2 analysts that rate Honda Motor a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Honda Motor has been 770,800 shares per day over the past 30 days. Honda has a market cap of $46.2 billion and is part of the consumer goods sector and automotive industry. Shares are down 18.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Honda Motor as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 16.8%. Since the same quarter one year prior, revenues rose by 30.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Automobiles industry average. The net income increased by 11.7% when compared to the same quarter one year prior, going from $915.44 million to $1,022.55 million.
  • Net operating cash flow has increased to $2,082.25 million or 24.93% when compared to the same quarter last year. Despite an increase in cash flow of 24.93%, HONDA MOTOR CO LTD is still growing at a significantly lower rate than the industry average of 91.20%.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Automobiles industry and the overall market, HONDA MOTOR CO LTD's return on equity has significantly outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • HMC has underperformed the S&P 500 Index, declining 23.94% from its price level of one year ago. 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.

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