Trade-Ideas LLC identified

II-VI

(

IIVI

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

  • IIVI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.6 million.
  • IIVI has traded 73,513 shares today.
  • IIVI is trading at 9.46 times the normal volume for the stock at this time of day.
  • IIVI is trading at a new high 10.24% 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 IIVI:

TheStreet Recommends

II-VI Incorporated develops, refines, manufactures, and markets engineered materials and opto-electronic components and products worldwide. It operates through three segments: II-VI Laser Solutions, II-VI Photonics, and II-VI Performance Products. IIVI has a PE ratio of 15. Currently there are 2 analysts that rate II-VI a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for II-VI has been 251,200 shares per day over the past 30 days. II-VI has a market cap of $1.0 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.24 and a short float of 2% with 3.46 days to cover. Shares are down 8.3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates II-VI 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, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:

  • IIVI's revenue growth has slightly outpaced the industry average of 0.6%. Since the same quarter one year prior, revenues slightly increased by 1.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • IIVI's debt-to-equity ratio is very low at 0.22 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, IIVI has a quick ratio of 2.38, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • II-VI INC has improved earnings per share by 35.0% 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. We feel that this trend should continue. During the past fiscal year, II-VI INC increased its bottom line by earning $1.05 versus $0.60 in the prior year. This year, the market expects an improvement in earnings ($1.08 versus $1.05).
  • 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 39.9% when compared to the same quarter one year prior, rising from $12.30 million to $17.21 million.

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