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 $3.7 million.
  • ACET has traded 134,660 shares today.
  • ACET is trading at 10.47 times the normal volume for the stock at this time of day.
  • ACET is trading at a new high 18.03% 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 1.1%. ACET has a PE ratio of 25. Currently there is 1 analyst that rates Aceto a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Aceto has been 162,800 shares per day over the past 30 days. Aceto has a market cap of $644.6 million and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.33 and a short float of 3.2% with 6.73 days to cover. Shares are up 2% year-to-date as of the close of trading on Thursday.

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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, increase in net income and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 6.5%. 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.
  • 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.
  • Net operating cash flow has significantly increased by 325.74% to $6.47 million when compared to the same quarter last year. In addition, ACETO CORP has also vastly surpassed the industry average cash flow growth rate of 13.92%.
  • 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. Although other factors naturally played a role, the company's strong earnings growth was key. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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