Strong On High Volume: KEYW (KEYW)

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

Trade-Ideas LLC identified

KEYW

(

KEYW

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

  • KEYW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.2 million.
  • KEYW has traded 59,070 shares today.
  • KEYW is trading at 3.15 times the normal volume for the stock at this time of day.
  • KEYW is trading at a new high 3.23% 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 KEYW:

The KEYW Holding Corporation, through its subsidiaries, provides mission-critical cybersecurity, cyber superiority, and geospatial intelligence solutions in the United States. It operates in two segments, Government Solutions and Commercial Cyber Solutions. Currently there are 5 analysts that rate KEYW a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for KEYW has been 362,400 shares per day over the past 30 days. KEYW has a market cap of $428.1 million and is part of the technology sector and computer software & services industry. The stock has a beta of 0.77 and a short float of 28.9% with 17.04 days to cover. Shares are up 79.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates KEYW 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 poor profit margins.

Highlights from the ratings report include:

  • KEYW's revenue growth has slightly outpaced the industry average of 0.5%. Since the same quarter one year prior, revenues slightly increased by 7.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.54, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, KEYW has a quick ratio of 2.24, which demonstrates the ability of the company to cover short-term liquidity needs.
  • KEYW HOLDING CORP has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. 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, KEYW HOLDING CORP reported poor results of -$1.35 versus -$0.34 in the prior year. This year, the market expects an improvement in earnings ($0.15 versus -$1.35).
  • 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 Aerospace & Defense industry. The net income has significantly decreased by 163.6% when compared to the same quarter one year ago, falling from -$5.85 million to -$15.41 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Aerospace & Defense industry and the overall market, KEYW HOLDING CORP's return on equity significantly trails that of both the industry average and the S&P 500.

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