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 Amira Nature Foods as such a stock due to the following factors:
- ANFI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.5 million.
- ANFI has traded 131,640 shares today.
- ANFI is trading at 15.03 times the normal volume for the stock at this time of day.
- ANFI is trading at a new high 7.09% 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 ANFI:
Amira Nature Foods Ltd is engaged in processing, distributing, and marketing packaged specialty rice and other food products. ANFI has a PE ratio of 15.2. Currently there is 1 analyst that rates Amira Nature Foods a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Amira Nature Foods has been 201,800 shares per day over the past 30 days. Amira Nature has a market cap of $463.3 million and is part of the consumer goods sector and food & beverage industry. Shares are up 3% year-to-date as of the close of trading on Thursday.
rates Amira Nature Foods as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 2.9%. Since the same quarter one year prior, revenues rose by 33.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 91.66% and other important driving factors, this stock has surged by 93.85% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- The gross profit margin for AMIRA NATURE FOODS LTD is rather low; currently it is at 22.35%. Regardless of ANFI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 7.16% trails the industry average.
- The debt-to-equity ratio of 1.20 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, ANFI has a quick ratio of 0.53, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- You can view the full Amira Nature Foods Ratings Report.