Trade-Ideas LLC identified

Exact

(

EXAS

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

  • EXAS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $98.5 million.
  • EXAS has traded 1.8 million shares today.
  • EXAS is trading at 4.39 times the normal volume for the stock at this time of day.
  • EXAS is trading at a new high 3.02% 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 EXAS:

Exact Sciences Corporation, a molecular diagnostics company, focuses on developing products for the early detection and prevention of various cancers. The company develops the Cologuard, a non-invasive stool-based DNA screening test for the early detection of colorectal cancer and pre-cancer. Currently there are 5 analysts that rate Exact a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Exact has been 4.7 million shares per day over the past 30 days. Exact has a market cap of $1.2 billion and is part of the health care sector and health services industry. The stock has a beta of 0.41 and a short float of 33% with 5.49 days to cover. Shares are up 75.6% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Exact as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • EXACT SCIENCES CORP's earnings per share declined by 22.5% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, EXACT SCIENCES CORP reported poor results of -$1.70 versus -$1.24 in the prior year. For the next year, the market is expecting a contraction of 19.4% in earnings (-$2.03 versus -$1.70).
  • 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 Biotechnology industry. The net income has significantly decreased by 32.6% when compared to the same quarter one year ago, falling from -$35.80 million to -$47.47 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Biotechnology industry and the overall market, EXACT SCIENCES CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to -$42.35 million or 22.74% 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.
  • Looking at the price performance of EXAS's shares over the past 12 months, there is not much good news to report: the stock is down 51.73%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

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