Trade-Ideas LLC identified

Quintiles Transnational Holdings

(

Q

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

  • Q has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $77.0 million.
  • Q has traded 314,911 shares today.
  • Q is trading at 11.74 times the normal volume for the stock at this time of day.
  • Q is trading at a new low 3.02% 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 Q:

Quintiles Transnational Holdings Inc., through its subsidiary, Quintiles Transnational Corp., provides biopharmaceutical development services and commercial outsourcing services in the Americas, Europe, Africa, and the Asia-Pacific. Q has a PE ratio of 23. Currently there are 10 analysts that rate Quintiles Transnational Holdings a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Quintiles Transnational Holdings has been 1.5 million shares per day over the past 30 days. Quintiles Transnational has a market cap of $8.9 billion and is part of the health care sector and health services industry. The stock has a beta of 0.44 and a short float of 9.3% with 7.64 days to cover. Shares are up 9.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Quintiles Transnational Holdings as a

hold

. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including poor profit margins and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • QUINTILES TRANSNATIONAL HLDG has improved earnings per share by 29.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, QUINTILES TRANSNATIONAL HLDG increased its bottom line by earning $3.09 versus $2.72 in the prior year. This year, the market expects an improvement in earnings ($3.79 versus $3.09).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Life Sciences Tools & Services industry. The net income increased by 23.5% when compared to the same quarter one year prior, going from $86.40 million to $106.67 million.
  • In its most recent trading session, Q has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The gross profit margin for QUINTILES TRANSNATIONAL HLDG is currently lower than what is desirable, coming in at 29.47%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 7.15% trails that of the industry average.

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