Trade-Ideas LLC identified

ARRIS Group

(

ARRS

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

  • ARRS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $71.3 million.
  • ARRS has traded 231,846 shares today.
  • ARRS is trading at 2.16 times the normal volume for the stock at this time of day.
  • ARRS is trading at a new low 3.06% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in ARRS with the Ticky from Trade-Ideas. See the FREE profile for ARRS NOW at Trade-Ideas

More details on ARRS:

TheStreet Recommends

ARRIS International plc provides media entertainment and data communications solutions in the United States and internationally. The company operates in two segments, Customer Premises Equipment and Network & Cloud. ARRS has a PE ratio of 18. Currently there are 6 analysts that rate ARRIS Group a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for ARRIS Group has been 1.9 million shares per day over the past 30 days. ARRIS Group has a market cap of $4.5 billion and is part of the technology sector and telecommunications industry. The stock has a beta of 1.36 and a short float of 11% with 4.30 days to cover. Shares are down 0.2% year-to-date as of the close of trading on Tuesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates ARRIS Group as a

buy

. The company's strengths can be seen in multiple areas, such as its notable return on equity, reasonable valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Communications Equipment industry and the overall market, ARRIS INTERNATIONAL PLC's return on equity exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly increased by 163.50% to $215.91 million when compared to the same quarter last year. In addition, ARRIS INTERNATIONAL PLC has also vastly surpassed the industry average cash flow growth rate of 8.91%.
  • ARRS, with its decline in revenue, slightly underperformed the industry average of 4.9%. Since the same quarter one year prior, revenues fell by 13.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • ARRS's debt-to-equity ratio of 0.90 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.41 is sturdy.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.