Trade-Ideas LLC identified

NCR

(

NCR

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

  • NCR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $37.2 million.
  • NCR has traded 177,886 shares today.
  • NCR is trading at 8.51 times the normal volume for the stock at this time of day.
  • NCR is trading at a new high 3.08% 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 NCR:

NCR Corporation, a technology company, provides products and services that enable businesses to connect, interact, and transact with their customers worldwide. The company operates through four segments: Financial Services, Retail Solutions, Hospitality, and Emerging Industries. Currently there are 3 analysts that rate NCR a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for NCR has been 1.1 million shares per day over the past 30 days. NCR has a market cap of $3.4 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.79 and a short float of 2.5% with 2.12 days to cover. Shares are up 3.7% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates NCR as a

hold

. The company's strongest point has been its expanding profit margins. At the same time, however, we also find weaknesses including generally higher debt management risk, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • Despite the weak revenue results, NCR has outperformed against the industry average of 12.8%. Since the same quarter one year prior, revenues slightly dropped by 2.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • NCR CORP's earnings per share declined by 30.4% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, NCR CORP swung to a loss, reporting -$0.94 versus $1.06 in the prior year. This year, the market expects an improvement in earnings ($2.94 versus -$0.94).
  • The change in net income from the same quarter one year ago has exceeded that of the Computers & Peripherals industry average, but is less than that of the S&P 500. The net income has decreased by 20.0% when compared to the same quarter one year ago, dropping from $40.00 million to $32.00 million.
  • The debt-to-equity ratio is very high at 2.63 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, NCR maintains a poor quick ratio of 0.83, which illustrates the inability to avoid short-term cash problems.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Computers & Peripherals industry and the overall market, NCR CORP's return on equity significantly trails that of both the industry average and the S&P 500.

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