Science Applications International (SAIC) Is Weak On High Volume Today
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
Science Applications International
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Science Applications International as such a stock due to the following factors:
- SAIC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.3 million.
- SAIC has traded 62,748 shares today.
- SAIC is trading at 6.72 times the normal volume for the stock at this time of day.
- SAIC is trading at a new low 6.14% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 SAIC:
Science Applications International Corporation, a technology integrator, provides full life-cycle services and solutions in technical, engineering, and enterprise information technology (IT) markets in the United States. The stock currently has a dividend yield of 2.1%. SAIC has a PE ratio of 19.3. Currently there is 1 analyst that rates Science Applications International a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Science Applications International has been 283,900 shares per day over the past 30 days. Science Applications International has a market cap of $2.5 billion and is part of the technology sector and computer software & services industry. Shares are up 12.5% year-to-date as of the close of trading on Monday.
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Analysis:
rates Science Applications International as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.
Highlights from the ratings report include:
- Powered by its strong earnings growth of 67.39% and other important driving factors, this stock has surged by 43.08% over the past year, outperforming the rise in the S&P 500 Index during the same period. Although SAIC had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- SCIENCE APPLICATIONS INTL CP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This year, the market expects an improvement in earnings ($2.87 versus $1.12).
- Even though the current debt-to-equity ratio is 1.46, it is still below the industry average, suggesting that this level of debt is acceptable within the IT Services industry. Despite the fact that SAIC's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.51 is high and demonstrates strong liquidity.
- Despite the weak revenue results, SAIC has outperformed against the industry average of 20.0%. Since the same quarter one year prior, revenues slightly dropped by 0.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The gross profit margin for SCIENCE APPLICATIONS INTL CP is currently extremely low, coming in at 9.26%. Regardless of SAIC's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, SAIC's net profit margin of 3.68% is significantly lower than the industry average.
- You can view the full Science Applications International Ratings Report.
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