Trade-Ideas LLC identified

Endologix

(

ELGX

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

  • ELGX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.4 million.
  • ELGX has traded 129,415 shares today.
  • ELGX is trading at 7.38 times the normal volume for the stock at this time of day.
  • ELGX is trading at a new high 3.07% 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 ELGX:

Endologix, Inc. develops, manufactures, markets, and sells medical devices for the treatment of abdominal aortic aneurysms in the United States and internationally. Currently there are 4 analysts that rate Endologix a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Endologix has been 841,200 shares per day over the past 30 days. Endologix has a market cap of $860.8 million and is part of the health care sector and health services industry. The stock has a beta of 1.53 and a short float of 14.2% with 11.99 days to cover. Shares are down 23.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Endologix as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • ENDOLOGIX INC's earnings per share declined by 35.7% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, ENDOLOGIX INC reported poor results of -$0.49 versus -$0.25 in the prior year. For the next year, the market is expecting a contraction of 24.5% in earnings (-$0.61 versus -$0.49).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income has significantly decreased by 44.6% when compared to the same quarter one year ago, falling from -$8.99 million to -$13.00 million.
  • 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 Health Care Equipment & Supplies industry and the overall market, ENDOLOGIX INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The share price of ENDOLOGIX INC is down 6.62% when compared to where it was trading one year earlier. This reflects both (a) the trend in the overall market as well as (b) the sharp decline in the company's earnings per share. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The gross profit margin for ENDOLOGIX INC is rather high; currently it is at 64.79%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, ELGX's net profit margin of -32.93% significantly underperformed when compared to the industry average.

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