Trimble Navigation (TRMB) Showing Signs Of Being Strong And Under The Radar

Trade-Ideas LLC identified Trimble Navigation ( TRMB) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Trimble Navigation as such a stock due to the following factors:

  • TRMB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $38.7 million.
  • TRMB has traded 134.760999999999995679900166578590869903564453125 options contracts today.
  • TRMB is making at least a new 3-day high.
  • TRMB has a PE ratio of 63.
  • TRMB is mentioned 1.74 times per day on StockTwits.
  • TRMB has not yet been mentioned on StockTwits today.
  • TRMB is currently in the upper 20% of its 1-year range.
  • TRMB is in the upper 35% of its 20-day range.
  • TRMB is in the upper 45% of its 5-day range.
  • TRMB is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on TRMB:

Trimble Navigation Limited provides technology solutions to enhance the work processes of professionals and field mobile workers worldwide. TRMB has a PE ratio of 63. Currently there are 10 analysts that rate Trimble Navigation a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Trimble Navigation has been 1.5 million shares per day over the past 30 days. Trimble Navigation has a market cap of $6.6 billion and is part of the technology sector and electronics industry. The stock has a beta of 2.65 and a short float of 2.1% with 3.70 days to cover. Shares are up 23.3% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Trimble Navigation as a hold. 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 and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 4.0%. Since the same quarter one year prior, revenues slightly increased by 0.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • TRMB's debt-to-equity ratio is very low at 0.30 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.78 is somewhat weak and could be cause for future problems.
  • 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 Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 41.9% when compared to the same quarter one year ago, falling from $34.10 million to $19.80 million.
  • 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 Electronic Equipment, Instruments & Components industry and the overall market, TRIMBLE NAVIGATION LTD's return on equity is below that of both the industry average and the S&P 500.

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