Trade-Ideas LLC identified Honda Motor ( HMC) as a pre-market mover with heavy 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 $21.3 million.
  • HMC traded 165,026 shares today in the pre-market hours as of 9:01 AM, representing 21% of its average daily volume.

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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 2.3%. HMC has a PE ratio of 8. 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 673,900 shares per day over the past 30 days. Honda has a market cap of $49.5 billion and is part of the consumer goods sector and automotive industry. Shares are down 13.5% year-to-date as of the close of trading on Thursday.

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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 good cash flow from operations. 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 11.4%. 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.
  • The debt-to-equity ratio is somewhat low, currently at 0.95, 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 0.82 is somewhat weak and could be cause for future problems.
  • 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 20.30% 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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