Trade-Ideas LLC identified

Sabre Corporation

(

SABR

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

  • SABR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $33.9 million.
  • SABR has traded 316,056 shares today.
  • SABR is trading at 10.39 times the normal volume for the stock at this time of day.
  • SABR is trading at a new low 5.03% 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 SABR:

TheStreet Recommends

Sabre Corporation provides technology solutions to the travel and tourism industry worldwide. It operates in two segments: Travel Network, and Airline and Hospitality Solutions. The stock currently has a dividend yield of 1.2%. SABR has a PE ratio of 48. Currently there are 9 analysts that rate Sabre Corporation a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Sabre Corporation has been 1.8 million shares per day over the past 30 days. Sabre has a market cap of $8.1 billion and is part of the technology sector and computer software & services industry. Shares are up 49.1% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Sabre Corporation as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 26.8%. Since the same quarter one year prior, revenues slightly increased by 9.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • SABRE CORP reported significant earnings per share improvement 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 year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, SABRE CORP turned its bottom line around by earning $0.40 versus -$0.04 in the prior year. This year, the market expects an improvement in earnings ($1.10 versus $0.40).
  • 44.61% is the gross profit margin for SABRE CORP which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, SABR's net profit margin of 4.55% significantly trails the industry average.
  • Powered by its strong earnings growth of 450.00% and other important driving factors, this stock has surged by 80.06% over the past year, outperforming the rise in the S&P 500 Index during the same period. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • The debt-to-equity ratio is very high at 10.33 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, SABR maintains a poor quick ratio of 0.79, which illustrates the inability to avoid short-term cash problems.

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