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Trade-Ideas LLC identified

Edap TMS

(

EDAP

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

  • EDAP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.8 million.
  • EDAP has traded 233,487 shares today.
  • EDAP is trading at 21.42 times the normal volume for the stock at this time of day.
  • EDAP is trading at a new high 16.16% 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 EDAP:

TheStreet Recommends

EDAP TMS S.A., together with its subsidiaries, develops, produces, markets, distributes, and maintains a portfolio of minimally invasive medical devices for the treatment of urological diseases worldwide. Currently there is 1 analyst that rates Edap TMS a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Edap TMS has been 157,000 shares per day over the past 30 days. Edap TMS has a market cap of $139.5 million and is part of the health care sector and health services industry. Shares are up 56.6% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Edap TMS as a

hold

. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income increased by 106.1% when compared to the same quarter one year prior, rising from -$7.22 million to $0.44 million.
  • EDAP's revenue growth trails the industry average of 34.5%. Since the same quarter one year prior, revenues rose by 17.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 42.46% is the gross profit margin for EDAP TMS SA -ADR which we consider to be strong. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 4.92% trails the industry average.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market on the basis of return on equity, EDAP TMS SA -ADR has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • EDAP TMS SA -ADR 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, EDAP TMS SA -ADR continued to lose money by earning -$0.04 versus -$0.35 in the prior year. For the next year, the market is expecting a contraction of 100.0% in earnings (-$0.08 versus -$0.04).

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