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

Axcelis Technologies

(

ACLS

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

  • ACLS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.5 million.
  • ACLS has traded 253,992 shares today.
  • ACLS is trading at 4.99 times the normal volume for the stock at this time of day.
  • ACLS is trading at a new high 4.05% 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 ACLS:

Axcelis Technologies, Inc. designs, manufactures, and services ion implantation and other processing equipment used in the fabrication of semiconductor chips worldwide. It provides offers a line of high energy, high current, and medium current implanters for all application requirements. ACLS has a PE ratio of 159. Currently there are 4 analysts that rate Axcelis Technologies a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Axcelis Technologies has been 732,500 shares per day over the past 30 days. Axcelis has a market cap of $361.0 million and is part of the technology sector and electronics industry. The stock has a beta of 1.89 and a short float of 2.7% with 2.50 days to cover. Shares are up 25.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Axcelis Technologies as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and solid stock price performance. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • ACLS's very impressive revenue growth greatly exceeded the industry average of 10.6%. Since the same quarter one year prior, revenues leaped by 90.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • ACLS's debt-to-equity ratio is very low at 0.26 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • AXCELIS TECHNOLOGIES INC 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. We feel that this trend should continue. During the past fiscal year, AXCELIS TECHNOLOGIES INC continued to lose money by earning -$0.10 versus -$0.15 in the prior year. This year, the market expects an improvement in earnings ($0.14 versus -$0.10).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 185.3% when compared to the same quarter one year prior, rising from -$6.90 million to $5.88 million.
  • Powered by its strong earnings growth of 183.33% and other important driving factors, this stock has surged by 83.81% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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