Trade-Ideas LLC identified

Infoblox

(

BLOX

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

  • BLOX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $19.1 million.
  • BLOX has traded 1.2 million shares today.
  • BLOX is trading at 13.22 times the normal volume for the stock at this time of day.
  • BLOX is trading at a new high 21.10% 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 BLOX:

Infoblox Inc., together with its subsidiaries, designs, develops, manufactures, and sells network control solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Currently there are 4 analysts that rate Infoblox a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Infoblox has been 1.2 million shares per day over the past 30 days. Infoblox has a market cap of $893.2 million and is part of the technology sector and telecommunications industry. The stock has a beta of 0.74 and a short float of 9.1% with 6.30 days to cover. Shares are down 16.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Infoblox as a

hold

. 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 and compelling growth in net income. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 8.1%. Since the same quarter one year prior, revenues rose by 29.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • BLOX has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 2.60, which clearly demonstrates the ability to cover short-term cash needs.
  • INFOBLOX 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, INFOBLOX INC reported poor results of -$0.48 versus -$0.44 in the prior year. This year, the market expects an improvement in earnings ($0.43 versus -$0.48).
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Software industry and the overall market, INFOBLOX INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • BLOX's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 30.33%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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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