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

EnerNOC

(

ENOC

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

  • ENOC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.8 million.
  • ENOC has traded 71,142 shares today.
  • ENOC is trading at 4.90 times the normal volume for the stock at this time of day.
  • ENOC is trading at a new high 3.36% 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 ENOC:

EnerNOC, Inc. provides energy intelligence software and related solutions for commercial, institutional, and industrial customers, as well as electric power grid operator and utility customers. ENOC has a PE ratio of 14.0. Currently there are 3 analysts that rate EnerNOC a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for EnerNOC has been 502,500 shares per day over the past 30 days. EnerNOC has a market cap of $453.5 million and is part of the services sector and diversified services industry. The stock has a beta of 0.58 and a short float of 16.2% with 13.80 days to cover. Shares are down 15.2% year-to-date as of the close of trading on Tuesday.

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 EnerNOC as a

hold

. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, robust revenue growth and reasonable valuation levels. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Software industry average. The net income increased by 20.3% when compared to the same quarter one year prior, going from -$34.35 million to -$27.39 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 26.6%. Since the same quarter one year prior, revenues rose by 21.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • ENOC has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Although the company had a strong debt-to-equity ratio, its quick ratio of 1.00 is somewhat weak and could be cause for future problems.
  • 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. When compared to other companies in the Software industry and the overall market, ENERNOC INC's return on equity is below that of both the industry average and the S&P 500.
  • ENOC has underperformed the S&P 500 Index, declining 11.58% from its price level of one year ago. 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.

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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