Strong On High Volume: Nuance Communications (NUAN)
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Nuance Communications as such a stock due to the following factors:
- NUAN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $32.8 million.
- NUAN has traded 2.0 million shares today.
- NUAN is trading at 61.92 times the normal volume for the stock at this time of day.
- NUAN is trading at a new high 12.02% 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 NUAN:
Nuance Communications, Inc. provides voice and language solutions for businesses and consumers worldwide. Currently there are 5 analysts that rate Nuance Communications a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Nuance Communications has been 1.6 million shares per day over the past 30 days. Nuance has a market cap of $5.1 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.43 and a short float of 3.5% with 3.20 days to cover. Shares are up 19.5% year-to-date as of the close of trading on Monday.
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Analysis:
rates Nuance Communications as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and compelling growth in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 17.3%. Since the same quarter one year prior, revenues slightly increased by 0.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- NUANCE COMMUNICATIONS INC has improved earnings per share by 23.5% 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, NUANCE COMMUNICATIONS INC reported poor results of -$0.47 versus -$0.36 in the prior year. This year, the market expects an improvement in earnings ($1.22 versus -$0.47).
- NUAN's debt-to-equity ratio of 0.91 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.36 is sturdy.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Software industry and the overall market, NUANCE COMMUNICATIONS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Nuance Communications Ratings Report.
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