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

Ruckus Wireless

(

RKUS

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

  • RKUS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.5 million.
  • RKUS has traded 627,337 shares today.
  • RKUS is trading at 9.05 times the normal volume for the stock at this time of day.
  • RKUS is trading at a new high 15.02% 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 RKUS:

Ruckus Wireless, Inc. provides carrier-class Wi-Fi solutions to service providers and enterprises worldwide. It provides gateways, controllers, and access points with related software and services. RKUS has a PE ratio of 114. Currently there are 9 analysts that rate Ruckus Wireless a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Ruckus Wireless has been 1.2 million shares per day over the past 30 days. Ruckus Wireless has a market cap of $889.9 million and is part of the technology sector and computer hardware industry. The stock has a beta of 0.61 and a short float of 13.9% with 9.87 days to cover. Shares are down 14.1% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Ruckus Wireless as a

sell

. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • 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 Communications Equipment industry. The net income has significantly decreased by 309.9% when compared to the same quarter one year ago, falling from $0.27 million to -$0.57 million.
  • Net operating cash flow has significantly decreased to -$5.31 million or 249.17% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • This stock's share value has moved by only 7.85% over the past year. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
  • 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 on the basis of return on equity, RUCKUS WIRELESS INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • RUCKUS WIRELESS INC's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, RUCKUS WIRELESS INC increased its bottom line by earning $0.09 versus $0.02 in the prior year. This year, the market expects an improvement in earnings ($0.43 versus $0.09).

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