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

  • ITT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $23.3 million.
  • ITT has traded 123,524 shares today.
  • ITT is trading at 8.02 times the normal volume for the stock at this time of day.
  • ITT is trading at a new high 4.03% 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 ITT:

ITT Inc. manufactures and sells engineered critical components and customized technology solutions for the energy, transportation, and industrial markets worldwide. The company operates in four segments: Industrial Process, Motion Technologies, Interconnect Solutions, and Control Technologies. The stock currently has a dividend yield of 1.6%. ITT has a PE ratio of 9. Currently there are 5 analysts that rate ITT a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for ITT has been 619,100 shares per day over the past 30 days. ITT has a market cap of $2.9 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.52 and a short float of 2.2% with 2.23 days to cover. Shares are down 12.7% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates ITT as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and good cash flow from operations. 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 revenue growth came in higher than the industry average of 10.3%. Since the same quarter one year prior, revenues slightly increased by 3.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • ITT's debt-to-equity ratio is very low at 0.20 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.16, which illustrates the ability to avoid short-term cash problems.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Machinery industry and the overall market, ITT INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • Net operating cash flow has significantly increased by 67.08% to $13.20 million when compared to the same quarter last year. In addition, ITT INC has also vastly surpassed the industry average cash flow growth rate of 16.59%.

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