Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified

Pros Holdings

(

PRO

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

  • PRO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.6 million.
  • PRO has traded 555,084 shares today.
  • PRO is trading at 62.35 times the normal volume for the stock at this time of day.
  • PRO is trading at a new low 23.00% 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 PRO:

PROS Holdings, Inc. provides big data software applications worldwide. Currently there are 4 analysts that rate Pros Holdings a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Pros Holdings has been 230,800 shares per day over the past 30 days. Pros has a market cap of $786.9 million and is part of the technology sector and computer software & services industry. The stock has a beta of 1.80 and a short float of 14.7% with 23.40 days to cover. Shares are down 1.2% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Pros Holdings as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 10.0%. Since the same quarter one year prior, revenues rose by 38.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The gross profit margin for PROS HOLDINGS INC is currently very high, coming in at 74.54%. Regardless of PRO's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PRO's net profit margin of -32.43% significantly underperformed when compared to the industry average.
  • This stock's share value has moved by only 18.74% over the past year. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Software industry. The net income has significantly decreased by 12660.4% when compared to the same quarter one year ago, falling from $0.14 million to -$17.46 million.
  • Net operating cash flow has significantly decreased to -$1.35 million or 123.27% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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