Trade-Ideas LLC identified

Nimble Storage

(

NMBL

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

  • NMBL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.6 million.
  • NMBL has traded 138,541 shares today.
  • NMBL is trading at 3.60 times the normal volume for the stock at this time of day.
  • NMBL is trading at a new low 6.11% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in NMBL with the Ticky from Trade-Ideas. See the FREE profile for NMBL NOW at Trade-Ideas

More details on NMBL:

Nimble Storage, Inc. provides flash-optimized storage platforms. The company's software and storage systems handle various mainstream applications, including virtual desktops, databases, email, collaboration, and analytics. Currently there are 9 analysts that rate Nimble Storage a buy, no analysts rate it a sell, and 12 rate it a hold.

The average volume for Nimble Storage has been 1.4 million shares per day over the past 30 days. Nimble has a market cap of $536.5 million and is part of the technology sector and computer hardware industry. Shares are down 21.7% year-to-date as of the close of trading on Tuesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Nimble Storage as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, generally disappointing historical performance in the stock itself and deteriorating net income.

Highlights from the ratings report include:

  • 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, NIMBLE STORAGE INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • NMBL'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 72.54%, 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.
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Computers & Peripherals industry average. The net income has decreased by 0.7% when compared to the same quarter one year ago, dropping from -$28.39 million to -$28.57 million.
  • NIMBLE STORAGE INC has improved earnings per share by 7.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, NIMBLE STORAGE INC reported poor results of -$1.37 versus -$0.32 in the prior year. This year, the market expects an improvement in earnings (-$0.46 versus -$1.37).
  • The gross profit margin for NIMBLE STORAGE INC is currently very high, coming in at 70.28%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -35.39% is in-line with the industry average.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.