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

Aceto

(

ACET

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

  • ACET has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.1 million.
  • ACET has traded 103,532 shares today.
  • ACET is trading at 24.05 times the normal volume for the stock at this time of day.
  • ACET is trading at a new high 9.35% 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 ACET:

Aceto Corporation, together with its subsidiaries, sources, markets, sells, and distributes pharmaceutical intermediates and active ingredients, finished dosage form generics, nutraceutical products, agricultural protection products, and specialty chemicals. The stock currently has a dividend yield of 1%. ACET has a PE ratio of 27.

The average volume for Aceto has been 137,600 shares per day over the past 30 days. Aceto has a market cap of $681.0 million and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.42 and a short float of 4.6% with 7.46 days to cover. Shares are up 7% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Aceto as a

buy

. 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, good cash flow from operations, solid stock price performance and growth in earnings per share. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • ACET's revenue growth has slightly outpaced the industry average of 12.9%. Since the same quarter one year prior, revenues rose by 16.8%. 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, 0.45, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, ACET has a quick ratio of 1.52, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Powered by its strong earnings growth of 52.63% and other important driving factors, this stock has surged by 33.06% 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, ACET should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • ACETO CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ACETO CORP increased its bottom line by earning $1.02 versus $0.82 in the prior year. This year, the market expects an improvement in earnings ($1.08 versus $1.02).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Providers & Services industry. The net income increased by 57.0% when compared to the same quarter one year prior, rising from $5.36 million to $8.41 million.

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