Ruckus Wireless (RKUS) Strong On High Relative Volume Today

Trade-Ideas LLC identified Ruckus Wireless (RKUS) as a strong on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Ruckus Wireless

(

RKUS

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

  • RKUS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $29.2 million.
  • RKUS has traded 428,827 shares today.
  • RKUS is trading at 5.67 times the normal volume for the stock at this time of day.
  • RKUS is trading at a new high 4.04% 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 RKUS:

Ruckus Wireless, Inc. provides carrier-class Wi-Fi solutions to service providers and enterprises worldwide. It provides gateways, controllers, and access points with related software and services. RKUS has a PE ratio of 188. Currently there are 7 analysts that rate Ruckus Wireless a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Ruckus Wireless has been 1.5 million shares per day over the past 30 days. Ruckus Wireless has a market cap of $1.0 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 0.45 and a short float of 12.9% with 4.23 days to cover. Shares are down 5.2% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Ruckus Wireless 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 expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 9.6%. Since the same quarter one year prior, revenues rose by 16.4%. 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.
  • RKUS has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.23, which clearly demonstrates the ability to cover short-term cash needs.
  • RUCKUS WIRELESS INC's earnings per share declined by 50.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, RUCKUS WIRELESS INC increased its bottom line by earning $0.09 versus $0.02 in the prior year. This year, the market expects an improvement in earnings ($0.43 versus $0.09).
  • 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 Communications Equipment industry. The net income has significantly decreased by 52.6% when compared to the same quarter one year ago, falling from $3.55 million to $1.68 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. Compared to other companies in the Communications Equipment industry and the overall market on the basis of return on equity, RUCKUS WIRELESS INC underperformed against that of the industry average and is significantly less than that of the S&P 500.

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