Vuzix Corporation (VUZI) Strong On High Relative Volume Today

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

Trade-Ideas LLC identified

Vuzix Corporation

(

VUZI

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

  • VUZI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.3 million.
  • VUZI has traded 198,518 shares today.
  • VUZI is trading at 14.12 times the normal volume for the stock at this time of day.
  • VUZI is trading at a new high 7.02% 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 VUZI:

Vuzix Corporation designs, manufactures, markets, and sells wearable display devices in the United States and internationally. Currently there are 2 analysts that rate Vuzix Corporation a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Vuzix Corporation has been 179,000 shares per day over the past 30 days. Vuzix has a market cap of $111.5 million and is part of the consumer goods sector and consumer durables industry. The stock has a beta of -0.03 and a short float of 13.7% with 4.18 days to cover. Shares are down 0.5% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Vuzix Corporation as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • 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 Household Durables industry and the overall market, VUZIX CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to -$3.21 million or 16.92% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • VUZI has underperformed the S&P 500 Index, declining 17.84% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Household Durables industry average, but is greater than that of the S&P 500. The net income increased by 25.8% when compared to the same quarter one year prior, rising from -$5.09 million to -$3.78 million.
  • VUZI, with its very weak revenue results, has greatly underperformed against the industry average of 3.4%. Since the same quarter one year prior, revenues plummeted by 55.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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