Trade-Ideas LLC identified

Science Applications International

(

SAIC

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

  • SAIC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.9 million.
  • SAIC has traded 99,546 shares today.
  • SAIC is trading at 9.60 times the normal volume for the stock at this time of day.
  • SAIC is trading at a new high 6.10% 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 SAIC:

Science Applications International Corporation provides technical, engineering, and enterprise information technology (IT) services in the United States. The stock currently has a dividend yield of 2.6%. SAIC has a PE ratio of 18. Currently there are 5 analysts that rate Science Applications International a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Science Applications International has been 312,000 shares per day over the past 30 days. Science Applications International has a market cap of $2.1 billion and is part of the technology sector and computer software & services industry. Shares are up 1.7% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Science Applications International as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth and reasonable valuation levels. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 18.3%. Since the same quarter one year prior, revenues rose by 13.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and the IT Services industry average. The net income has decreased by 8.1% when compared to the same quarter one year ago, dropping from $37.00 million to $34.00 million.
  • SCIENCE APPLICATIONS INTL CP's earnings per share declined by 6.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, SCIENCE APPLICATIONS INTL CP increased its bottom line by earning $2.91 versus $1.12 in the prior year. For the next year, the market is expecting a contraction of 5.8% in earnings ($2.74 versus $2.91).
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, SAIC has underperformed the S&P 500 Index, declining 15.07% from its price level of one year ago. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.

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