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 or Stephanie Link.

Trade-Ideas LLC identified

Riverbed Technology

(

RVBD

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

  • RVBD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $25.7 million.
  • RVBD has traded 745,899 shares today.
  • RVBD is trading at 24.28 times the normal volume for the stock at this time of day.
  • RVBD is trading at a new high 5.03% 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 RVBD:

TST Recommends

Riverbed Technology, Inc. provides application performance infrastructure solutions in the United States and internationally. RVBD has a PE ratio of 137.5. Currently there are 3 analysts that rate Riverbed Technology a buy, no analysts rate it a sell, and 19 rate it a hold.

The average volume for Riverbed Technology has been 1.3 million shares per day over the past 30 days. Riverbed Technology has a market cap of $2.9 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 2.42 and a short float of 2% with 1.93 days to cover. Shares are unchanged year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Riverbed Technology as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and expanding profit margins. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

Highlights from the ratings report include:

  • RVBD's revenue growth has slightly outpaced the industry average of 4.3%. Since the same quarter one year prior, revenues slightly increased by 5.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Communications Equipment industry. The net income increased by 140.9% when compared to the same quarter one year prior, rising from -$16.52 million to $6.77 million.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry, implying reduced upside potential.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Communications Equipment industry and the overall market, RIVERBED TECHNOLOGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has declined marginally to $36.73 million or 1.54% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, RIVERBED TECHNOLOGY INC has marginally lower results.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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