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.

Trade-Ideas LLC identified

Ingram Micro

(

IM

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

  • IM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $25.8 million.
  • IM has traded 112,413 shares today.
  • IM is trading at 5.44 times the normal volume for the stock at this time of day.
  • IM 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 IM:

Ingram Micro Inc. distributes information technology (IT) products; and provides supply chain and mobile device lifecycle services worldwide. IM has a PE ratio of 14. Currently there are 6 analysts that rate Ingram Micro a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Ingram Micro has been 918,200 shares per day over the past 30 days. Ingram Micro has a market cap of $3.9 billion and is part of the services sector and wholesale industry. The stock has a beta of 1.22 and a short float of 2.5% with 3.33 days to cover. Shares are down 11.4% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Ingram Micro as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, attractive valuation levels, good cash flow from operations and growth in earnings per share. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • IM's revenue growth has slightly outpaced the industry average of 1.9%. Since the same quarter one year prior, revenues slightly increased by 2.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 74.3% when compared to the same quarter one year prior, rising from $24.83 million to $43.28 million.
  • Net operating cash flow has significantly increased by 113.82% to $58.97 million when compared to the same quarter last year. In addition, INGRAM MICRO INC has also vastly surpassed the industry average cash flow growth rate of -19.12%.
  • The current debt-to-equity ratio, 0.34, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.89 is somewhat weak and could be cause for future problems.

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