Trade-Ideas LLC identified

Knowles Corporation

(

KN

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

  • KN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $23.3 million.
  • KN has traded 1.1 million shares today.
  • KN is trading at 9.43 times the normal volume for the stock at this time of day.
  • KN is trading at a new high 10.02% 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 KN:

Knowles Corporation designs, manufactures, and sells products and components to the mobile communications, consumer electronics, medical technology, telecommunications infrastructure, military, aerospace, and industrial markets worldwide. Currently there is 1 analyst that rates Knowles Corporation a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Knowles Corporation has been 1.5 million shares per day over the past 30 days. Knowles has a market cap of $1.4 billion and is part of the technology sector and telecommunications industry. Shares are down 30.5% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Knowles Corporation as a

sell

. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • Net operating cash flow has decreased to $17.50 million or 19.10% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • KN's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 42.36%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • KN, with its decline in revenue, slightly underperformed the industry average of 6.6%. Since the same quarter one year prior, revenues fell by 14.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The current debt-to-equity ratio, 0.34, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.90 is somewhat weak and could be cause for future problems.
  • Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, KNOWLES CORP's return on equity significantly trails that of both the industry average and the S&P 500.

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