Trade-Ideas LLC identified

Quad/Graphics

(

QUAD

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

  • QUAD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.7 million.
  • QUAD has traded 51,804 shares today.
  • QUAD is trading at 2.06 times the normal volume for the stock at this time of day.
  • QUAD is trading at a new high 3.01% 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 QUAD:

Quad/Graphics, Inc., together with its subsidiaries, provides print and media solutions in the United States, Europe, Latin America, and internationally. The company operates in two segments, United States Print and Related Services; and International. The stock currently has a dividend yield of 4.8%. Currently there is 1 analyst that rates Quad/Graphics a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Quad/Graphics has been 363,000 shares per day over the past 30 days. Quad/Graphics has a market cap of $1.3 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.35 and a short float of 3.6% with 3.69 days to cover. Shares are up 179% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Quad/Graphics as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:

  • The debt-to-equity ratio is very high at 3.07 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, QUAD maintains a poor quick ratio of 0.78, 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 Commercial Services & Supplies industry and the overall market, QUAD/GRAPHICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for QUAD/GRAPHICS INC is rather low; currently it is at 22.93%. Regardless of QUAD'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 0.36% trails the industry average.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Commercial Services & Supplies industry average, but is greater than that of the S&P 500. The net income increased by 110.8% when compared to the same quarter one year prior, rising from -$35.20 million to $3.80 million.
  • QUAD, with its decline in revenue, underperformed when compared the industry average of 6.4%. Since the same quarter one year prior, revenues slightly dropped by 4.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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