Trade-Ideas LLC identified

INC Research Holdings Inc A

(

INCR

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified INC Research Holdings Inc A as such a stock due to the following factors:

  • INCR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.9 million.
  • INCR has traded 87,370 shares today.
  • INCR is trading at 6.25 times the normal volume for the stock at this time of day.
  • INCR is trading at a new low 3.30% 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 INCR:

INC Research Holdings, Inc., a contract research organization, provides various clinical development services for the biopharmaceutical and medical device industries. INCR has a PE ratio of 43. Currently there are 6 analysts that rate INC Research Holdings Inc A a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for INC Research Holdings Inc A has been 575,500 shares per day over the past 30 days. INC Research Holdings Inc A has a market cap of $2.2 billion and is part of the services sector and diversified services industry. Shares are down 17.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates INC Research Holdings Inc A as a

hold

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, robust revenue growth and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins.

Highlights from the ratings report include:

  • Powered by its strong earnings growth of 204.76% and other important driving factors, this stock has surged by 57.10% over the past year, outperforming the rise in the S&P 500 Index during the same period.
  • The revenue growth came in higher than the industry average of 3.7%. Since the same quarter one year prior, revenues rose by 17.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • When compared to other companies in the Life Sciences Tools & Services industry and the overall market, INC RESEARCH HOLDINGS INC's return on equity is below that of both the industry average and the S&P 500.
  • The gross profit margin for INC RESEARCH HOLDINGS INC is currently lower than what is desirable, coming in at 27.87%. Regardless of INCR's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 10.79% trails the industry average.
  • The debt-to-equity ratio of 1.49 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, INCR's quick ratio is somewhat strong at 1.01, demonstrating the ability to handle short-term liquidity needs.

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