Strong On High Volume: Spectranetics (SPNC)
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
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Spectranetics as such a stock due to the following factors:
- SPNC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.7 million.
- SPNC has traded 108,854 shares today.
- SPNC is trading at 8.32 times the normal volume for the stock at this time of day.
- SPNC is trading at a new high 3.06% 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 SPNC:
The Spectranetics Corporation, together with its subsidiaries, develops, manufactures, markets, and distributes single-use medical devices used in minimally invasive procedures in the cardiovascular system. Currently there are 7 analysts that rate Spectranetics a buy, 1 analyst rates it a sell, and none rate it a hold.
The average volume for Spectranetics has been 356,900 shares per day over the past 30 days. Spectranetics has a market cap of $1.5 billion and is part of the health care sector and health services industry. The stock has a beta of 1.93 and a short float of 16% with 20.18 days to cover. Shares are up 1% year-to-date as of the close of trading on Friday.
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Analysis:
rates Spectranetics as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and generally higher debt management risk.
Highlights from the ratings report include:
- SPNC's very impressive revenue growth greatly exceeded the industry average of 1.1%. Since the same quarter one year prior, revenues leaped by 50.2%. 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.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. 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.
- The gross profit margin for SPECTRANETICS CORP is currently very high, coming in at 77.98%. Regardless of SPNC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SPNC's net profit margin of -23.39% significantly underperformed when compared to the industry average.
- 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 Health Care Equipment & Supplies industry and the overall market, SPECTRANETICS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- 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 Health Care Equipment & Supplies industry. The net income has significantly decreased by 1768.3% when compared to the same quarter one year ago, falling from $0.88 million to -$14.73 million.
- You can view the full Spectranetics Ratings Report.
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