Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified IGI as such a stock due to the following factors:
- IG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.9 million.
- IG has traded 73,199 shares today.
- IG is trading at 2.15 times the normal volume for the stock at this time of day.
- IG is trading at a new high 4.17% 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 IG:
IGI Laboratories, Inc. develops, manufactures, and markets topical formulations in the United States. The company sells its generic topical pharmaceutical products under the IGI label. Currently there are 2 analysts that rate IGI a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for IGI has been 965,000 shares per day over the past 30 days. IGI has a market cap of $489.3 million and is part of the health care sector and drugs industry. The stock has a beta of 0.57 and a short float of 6.6% with 4.82 days to cover. Shares are up 203.9% year-to-date as of the close of trading on Wednesday.
rates IGI as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- IG's very impressive revenue growth greatly exceeded the industry average of 5.4%. Since the same quarter one year prior, revenues leaped by 66.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
- IG's debt-to-equity ratio is very low at 0.09 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.54, which clearly demonstrates the ability to cover short-term cash needs.
- This stock has managed to rise its share value by 267.57% over the past twelve months. Regarding the stock's future course, although almost any stock can fall in a broad market decline, IG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- IGI LABORATORIES INC has shown no change in earnings for its most recently reported quarter when compared with the same quarter a year earlier. 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, IGI LABORATORIES INC continued to lose money by earning -$0.03 versus -$0.10 in the prior year. This year, the market expects an improvement in earnings ($0.06 versus -$0.03).
- 39.48% is the gross profit margin for IGI LABORATORIES INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -3.02% is in-line with the industry average.
- You can view the full IGI Ratings Report.