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 Affymetrix as such a stock due to the following factors:
- AFFX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.3 million.
- AFFX has traded 68,716 shares today.
- AFFX is trading at 2.24 times the normal volume for the stock at this time of day.
- AFFX is trading at a new high 4.04% 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 AFFX:
Affymetrix, Inc. provides life science tools and molecular diagnostic products that enable parallel analysis of biological systems at the gene, protein, and cell level primarily in the United States, Europe, Latin America, and Asia. AFFX has a PE ratio of 1049.0. Currently there is 1 analyst that rates Affymetrix a buy, 2 analysts rate it a sell, and 1 rates it a hold.
The average volume for Affymetrix has been 727,700 shares per day over the past 30 days. Affymetrix has a market cap of $771.9 million and is part of the technology sector and electronics industry. The stock has a beta of -0.46 and a short float of 19% with 12.86 days to cover. Shares are up 5.3% year-to-date as of the close of trading on Friday.
rates Affymetrix as a
. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Life Sciences Tools & Services industry. The net income increased by 157.3% when compared to the same quarter one year prior, rising from -$4.16 million to $2.38 million.
- AFFX's revenue growth trails the industry average of 25.6%. Since the same quarter one year prior, revenues slightly increased by 8.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The gross profit margin for AFFYMETRIX INC is rather high; currently it is at 67.46%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 2.73% trails the industry average.
- AFFYMETRIX INC reported significant earnings per share improvement 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, AFFYMETRIX INC reported poor results of -$0.27 versus -$0.15 in the prior year. This year, the market expects an improvement in earnings ($0.25 versus -$0.27).
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Life Sciences Tools & Services industry and the overall market, AFFYMETRIX INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Affymetrix Ratings Report.