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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

Global Eagle Entertainment

(

ENT

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

  • ENT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.3 million.
  • ENT has traded 84,301 shares today.
  • ENT is trading at 3.27 times the normal volume for the stock at this time of day.
  • ENT is trading at a new high 4.03% 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 ENT:

Global Eagle Entertainment Inc., a content and connectivity distribution and services company, provides in-flight video content, e-commerce, and information services for the airline industry worldwide. The company operates through two segments, Connectivity and Content. Currently there are 5 analysts that rate Global Eagle Entertainment a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Global Eagle Entertainment has been 461,300 shares per day over the past 30 days. Global Eagle Entertainment has a market cap of $1.0 billion and is part of the services sector and media industry. The stock has a beta of 1.22 and a short float of 19.5% with 13.44 days to cover. Shares are up 2.2% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Global Eagle Entertainment as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including poor profit margins and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 7.7%. Since the same quarter one year prior, revenues rose by 26.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • ENT's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • ENT has underperformed the S&P 500 Index, declining 23.86% 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.
  • The gross profit margin for GLOBAL EAGLE ENTERTAINMENT is currently lower than what is desirable, coming in at 26.27%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, ENT's net profit margin of -24.80% significantly underperformed when compared to the industry average.

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