Trade-Ideas LLC identified

Cirrus Logic

(

CRUS

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

  • CRUS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $42.5 million.
  • CRUS has traded 226,537 shares today.
  • CRUS is trading at 2.17 times the normal volume for the stock at this time of day.
  • CRUS is trading at a new high 4.02% 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 CRUS:

Cirrus Logic, Inc., a fabless semiconductor company, develops analog and mixed-signal integrated circuits for a range of consumer and industrial markets. CRUS has a PE ratio of 8. Currently there are 4 analysts that rate Cirrus Logic a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Cirrus Logic has been 1.9 million shares per day over the past 30 days. Cirrus Logic has a market cap of $1.9 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.25 and a short float of 13.9% with 5.03 days to cover. Shares are up 28.7% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Cirrus Logic 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, solid stock price performance, attractive valuation levels and compelling growth in net income. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 11.0%. Since the same quarter one year prior, revenues rose by 45.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • CRUS's debt-to-equity ratio is very low at 0.19 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, CRUS has a quick ratio of 1.66, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Powered by its strong earnings growth of 5200.00% and other important driving factors, this stock has surged by 63.43% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CRUS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • 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 3993.9% when compared to the same quarter one year prior, rising from $0.85 million to $34.88 million.

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