Trade-Ideas LLC identified

Convergys Corporation

(

CVG

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

  • CVG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.9 million.
  • CVG has traded 160,322 shares today.
  • CVG is trading at 8.99 times the normal volume for the stock at this time of day.
  • CVG is trading at a new high 6.02% 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 CVG:

Convergys Corporation provides customer management services to communications and media, technology, financial services, retail, and healthcare industries in North America and internationally. The stock currently has a dividend yield of 1.3%. CVG has a PE ratio of 15. Currently there are 2 analysts that rate Convergys Corporation a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Convergys Corporation has been 577,300 shares per day over the past 30 days. Convergys has a market cap of $2.3 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.37 and a short float of 7.2% with 11.89 days to cover. Shares are down 3.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Convergys Corporation as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • CONVERGYS CORP 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, CONVERGYS CORP increased its bottom line by earning $1.10 versus $0.52 in the prior year. This year, the market expects an improvement in earnings ($1.72 versus $1.10).
  • CVG's debt-to-equity ratio is very low at 0.25 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, CVG has a quick ratio of 1.81, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 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 IT Services industry and the overall market on the basis of return on equity, CONVERGYS CORP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

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