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

Allied Motion Technologies

(

AMOT

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

  • AMOT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.9 million.
  • AMOT has traded 53,693 shares today.
  • AMOT is trading at 8.09 times the normal volume for the stock at this time of day.
  • AMOT is trading at a new low 5.13% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 AMOT:

Allied Motion Technologies Inc. designs, manufactures, and sells motors, electronic motion controls, gearing, and optical encoder products worldwide. The stock currently has a dividend yield of 0.2%. AMOT has a PE ratio of 27.2.

The average volume for Allied Motion Technologies has been 94,500 shares per day over the past 30 days. Allied Motion has a market cap of $381.8 million and is part of the industrial goods sector and industrial industry. The stock has a beta of 2.28 and a short float of 0.8% with 0.29 days to cover. Shares are up 73.2% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Allied Motion Technologies as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, good cash flow from operations, solid stock price performance and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 8.2%. Since the same quarter one year prior, revenues rose by 23.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 253.33% and other important driving factors, this stock has surged by 241.90% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • ALLIED MOTION TECHNOLOGIES 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. During the past fiscal year, ALLIED MOTION TECHNOLOGIES increased its bottom line by earning $1.51 versus $0.44 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electrical Equipment industry. The net income increased by 265.7% when compared to the same quarter one year prior, rising from $1.34 million to $4.90 million.
  • 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. When compared to other companies in the Electrical Equipment industry and the overall market, ALLIED MOTION TECHNOLOGIES's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.

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