Trade-Ideas LLC identified

Flextronics International

(

FLEX

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

  • FLEX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $25.1 million.
  • FLEX has traded 304,362 shares today.
  • FLEX is trading at 2.14 times the normal volume for the stock at this time of day.
  • FLEX is trading at a new high 3.04% 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 FLEX:

Flextronics International Ltd. provides design, manufacturing, and supply chain services and solutions to original equipment manufacturers worldwide. FLEX has a PE ratio of 11. Currently there are 4 analysts that rate Flextronics International a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Flextronics International has been 3.6 million shares per day over the past 30 days. Flextronics International has a market cap of $5.9 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.62 and a short float of 2.7% with 5.68 days to cover. Shares are down 7.4% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Flextronics International as a

buy

. The company's strengths can be seen in multiple areas, such as its notable return on equity, attractive valuation levels, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • 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 Electronic Equipment, Instruments & Components industry and the overall market, FLEXTRONICS INTERNATIONAL's return on equity exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly increased by 546.32% to $362.28 million when compared to the same quarter last year. In addition, FLEXTRONICS INTERNATIONAL has also vastly surpassed the industry average cash flow growth rate of 29.29%.
  • After a year of stock price fluctuations, the net result is that FLEX's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • FLEXTRONICS INTERNATIONAL's earnings per share declined by 34.5% 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, FLEXTRONICS INTERNATIONAL increased its bottom line by earning $1.01 versus $0.58 in the prior year. This year, the market expects an improvement in earnings ($1.06 versus $1.01).

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