Trade-Ideas LLC identified

Diebold

(

DBD

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

  • DBD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.5 million.
  • DBD has traded 132,122 shares today.
  • DBD is trading at 6.13 times the normal volume for the stock at this time of day.
  • DBD is trading at a new high 5.02% 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 DBD:

Diebold, Incorporated provides financial self-service delivery, integrated services and software, and security systems primarily to the financial, commercial, retail, and other markets. The stock currently has a dividend yield of 4.4%. DBD has a PE ratio of 24. Currently there are 2 analysts that rate Diebold a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Diebold has been 639,900 shares per day over the past 30 days. Diebold has a market cap of $1.7 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.95 and a short float of 9.7% with 13.19 days to cover. Shares are down 13.2% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Diebold as a

hold

. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, weak operating cash flow and poor profit margins.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Computers & Peripherals industry. The net income increased by 6107.1% when compared to the same quarter one year prior, rising from -$2.80 million to $168.20 million.
  • DIEBOLD INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. 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, DIEBOLD INC reported lower earnings of $0.88 versus $1.76 in the prior year. This year, the market expects an improvement in earnings ($1.50 versus $0.88).
  • Net operating cash flow has significantly decreased to -$115.20 million or 85.20% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • DBD has underperformed the S&P 500 Index, declining 23.55% from its price level of one year ago. 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.

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