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.

Trade-Ideas LLC identified

FLIR Systems

(

FLIR

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

  • FLIR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.0 million.
  • FLIR has traded 169,417 shares today.
  • FLIR is trading at 5.47 times the normal volume for the stock at this time of day.
  • FLIR is trading at a new low 3.04% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 FLIR:

FLIR Systems, Inc. designs, manufactures, and markets thermal imaging, visible-light imaging systems, locater systems, measurement and diagnostic systems, and threat-detection solutions worldwide. The stock currently has a dividend yield of 1.4%. FLIR has a PE ratio of 21.9. Currently there are 4 analysts that rate FLIR Systems a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for FLIR Systems has been 653,400 shares per day over the past 30 days. FLIR Systems has a market cap of $4.3 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.74 and a short float of 2.3% with 5.74 days to cover. Shares are down 5.8% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates FLIR Systems as a

buy

. 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, growth in earnings per share, increase in net income and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • FLIR's revenue growth has slightly outpaced the industry average of 3.9%. Since the same quarter one year prior, revenues slightly increased by 8.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • FLIR's debt-to-equity ratio is very low at 0.23 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.86, which clearly demonstrates the ability to cover short-term cash needs.
  • FLIR SYSTEMS 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 year. We feel that this trend should continue. During the past fiscal year, FLIR SYSTEMS INC increased its bottom line by earning $1.40 versus $1.22 in the prior year. This year, the market expects an improvement in earnings ($1.65 versus $1.40).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 153.2% when compared to the same quarter one year prior, rising from $28.74 million to $72.75 million.
  • The gross profit margin for FLIR SYSTEMS INC is rather high; currently it is at 52.42%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 16.74% is above that of the industry average.

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