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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

CTPartners Executive Search

(

CTP

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

  • CTP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.5 million.
  • CTP has traded 63,307 shares today.
  • CTP is trading at 5.24 times the normal volume for the stock at this time of day.
  • CTP is trading at a new high 15.15% 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 CTP:

TheStreet Recommends

CTPartners Executive Search Inc., together with its subsidiaries, provides retained executive search services worldwide. CTP has a PE ratio of 7.1. Currently there are no analysts that rate CTPartners Executive Search a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for CTPartners Executive Search has been 203,900 shares per day over the past 30 days. CTPartners Executive Search has a market cap of $31.6 million and is part of the services sector and diversified services industry. The stock has a beta of 0.71 and a short float of 1.2% with 0.10 days to cover. Shares are down 63.9% year-to-date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates CTPartners Executive Search as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and poor profit margins.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 7.2%. Since the same quarter one year prior, revenues rose by 38.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • CTPARTNERS EXEC SEARCH 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. This trend suggests that the performance of the business is improving. During the past fiscal year, CTPARTNERS EXEC SEARCH INC continued to lose money by earning -$0.23 versus -$0.51 in the prior year. This year, the market expects an improvement in earnings ($0.94 versus -$0.23).
  • CTP's debt-to-equity ratio of 0.93 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 0.74 is weak.
  • CTP's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 26.03%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • Net operating cash flow has decreased to $6.02 million or 22.12% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, CTPARTNERS EXEC SEARCH INC has marginally lower results.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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