Trade-Ideas LLC identified

Qualys

(

QLYS

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

  • QLYS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.7 million.
  • QLYS has traded 235,166 shares today.
  • QLYS is trading at 22.98 times the normal volume for the stock at this time of day.
  • QLYS is trading at a new low 14.04% 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 QLYS:

TST Recommends

Qualys, Inc. provides cloud security and compliance solutions in the United States and internationally. QLYS has a PE ratio of 31. Currently there are 6 analysts that rate Qualys a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Qualys has been 349,000 shares per day over the past 30 days. Qualys has a market cap of $1.0 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.77 and a short float of 6.1% with 4.41 days to cover. Shares are down 11.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Qualys as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, compelling growth in net income and good cash flow from operations. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 16.5%. Since the same quarter one year prior, revenues rose by 23.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • QLYS has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, QLYS has a quick ratio of 2.01, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Software industry and the overall market, QUALYS INC's return on equity exceeds that of both the industry average and the S&P 500.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 32.8% when compared to the same quarter one year prior, rising from $3.11 million to $4.12 million.
  • Net operating cash flow has significantly increased by 62.64% to $16.12 million when compared to the same quarter last year. In addition, QUALYS INC has also vastly surpassed the industry average cash flow growth rate of -7.30%.

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