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 or Stephanie Link.
Trade-Ideas LLC identified
) 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 $2.9 million.
- ACET has traded 52,598 shares today.
- ACET is trading at 7.83 times the normal volume for the stock at this time of day.
- ACET is trading at a new high 7.01% 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 1.2%. ACET has a PE ratio of 19.4.
The average volume for Aceto has been 177,300 shares per day over the past 30 days. Aceto has a market cap of $563.4 million and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.31 and a short float of 4% with 7.96 days to cover. Shares are down 21.6% year-to-date as of the close of trading on Thursday.
rates Aceto as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- ACET's debt-to-equity ratio is very low at 0.10 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.43, which illustrates the ability to avoid short-term cash problems.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- ACETO CORP's earnings per share declined by 32.1% 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, ACETO CORP increased its bottom line by earning $0.82 versus $0.63 in the prior year. This year, the market expects an improvement in earnings ($1.00 versus $0.82).
- ACET, with its decline in revenue, underperformed when compared the industry average of 0.7%. Since the same quarter one year prior, revenues fell by 17.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- You can view the full Aceto Ratings Report.