Strong On High Volume: Barrett Business Services (BBSI)

Trade-Ideas LLC identified Barrett Business Services (BBSI) as a strong on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Barrett Business Services

(

BBSI

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

  • BBSI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.0 million.
  • BBSI has traded 54,897 shares today.
  • BBSI is trading at 5.41 times the normal volume for the stock at this time of day.
  • BBSI is trading at a new high 10.23% 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 BBSI:

Barrett Business Services, Inc. provides business management solutions for small and medium-sized companies in the United States. The stock currently has a dividend yield of 1.7%. BBSI has a PE ratio of 18. Currently there are 2 analysts that rate Barrett Business Services a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Barrett Business Services has been 105,300 shares per day over the past 30 days. Barrett Business Services has a market cap of $379.9 million and is part of the services sector and diversified services industry. The stock has a beta of 1.55 and a short float of 4% with 0.99 days to cover. Shares are up 40.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Barrett Business Services as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, compelling growth in net income, notable return on equity and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 2.0%. Since the same quarter one year prior, revenues rose by 13.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 129.79% and other important driving factors, this stock has surged by 119.17% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BBSI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Professional Services industry and the overall market, BARRETT BUSINESS SVCS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Professional Services industry. The net income increased by 130.6% when compared to the same quarter one year prior, rising from -$37.82 million to $11.58 million.
  • BARRETT BUSINESS SVCS INC reported significant earnings per share improvement 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, BARRETT BUSINESS SVCS INC swung to a loss, reporting -$3.82 versus $2.39 in the prior year. This year, the market expects an improvement in earnings ($3.47 versus -$3.82).

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