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
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Cubic as such a stock due to the following factors:
- CUB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.1 million.
- CUB has traded 56,317 shares today.
- CUB is trading at 15.91 times the normal volume for the stock at this time of day.
- CUB is trading at a new high 7.29% 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 CUB:
Cubic Corporation designs, develops, manufactures, and sells mass transit fare collection systems, air and ground combat training systems, and secure communications products for various federal and regional government agencies in the United States and internationally. The stock currently has a dividend yield of 0.5%. Currently there are 3 analysts that rate Cubic a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Cubic has been 119,400 shares per day over the past 30 days. Cubic has a market cap of $1.2 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.89 and a short float of 4.1% with 9.06 days to cover. Shares are down 10.6% year-to-date as of the close of trading on Tuesday.
rates Cubic as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.
Highlights from the ratings report include:
- CUB's revenue growth has slightly outpaced the industry average of 0.7%. Since the same quarter one year prior, revenues slightly increased by 0.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- CUB's debt-to-equity ratio is very low at 0.14 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, CUB has a quick ratio of 2.44, which demonstrates the ability of the company to cover short-term liquidity needs.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Aerospace & Defense industry and the overall market, CUBIC CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for CUBIC CORP is rather low; currently it is at 22.68%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 3.58% trails that of the industry average.
- You can view the full Cubic Ratings Report.