Trade-Ideas LLC identified CNH Industrial ( CNHI) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified CNH Industrial as such a stock due to the following factors:

  • CNHI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.6 million.
  • CNHI traded 275,598 shares today in the pre-market hours as of 8:57 AM, representing 14% of its average daily volume.

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More details on CNHI:

CNH Industrial N.V. designs, produces, markets, sells, and finances agricultural and construction equipment, trucks, commercial vehicles, buses, and specialty vehicles, engines, transmissions, and axles worldwide. The stock currently has a dividend yield of 2.1%. CNHI has a PE ratio of 36. Currently there are no analysts that rate CNH Industrial a buy, 3 analysts rate it a sell, and 3 rate it a hold.

The average volume for CNH Industrial has been 2.2 million shares per day over the past 30 days. CNH Industrial has a market cap of $9.4 billion and is part of the industrial goods sector and industrial industry. Shares are down 1.8% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates CNH Industrial as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Machinery industry. The net income has significantly decreased by 2427.3% when compared to the same quarter one year ago, falling from $22.00 million to -$512.00 million.
  • The debt-to-equity ratio is very high at 5.92 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Machinery industry and the overall market, CNH INDUSTRIAL NV's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CNH INDUSTRIAL NV is rather low; currently it is at 22.62%. Regardless of CNHI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, CNHI's net profit margin of -10.08% significantly underperformed when compared to the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 27.48%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 2000.00% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

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