Trade-Ideas LLC identified

Novadaq Technologies

(

NVDQ

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

  • NVDQ has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.0 million.
  • NVDQ has traded 93,455 shares today.
  • NVDQ is trading at 4.82 times the normal volume for the stock at this time of day.
  • NVDQ is trading at a new high 4.12% 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 NVDQ:

Novadaq Technologies Inc. develops, manufactures, and markets fluorescence imaging products for use by surgeons in the operating room and other clinical settings in the United States and internationally. Currently there are 7 analysts that rate Novadaq Technologies a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Novadaq Technologies has been 265,800 shares per day over the past 30 days. Novadaq has a market cap of $622.1 million and is part of the health care sector and health services industry. Shares are down 38.6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Novadaq Technologies 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:

  • NOVADAQ TECHNOLOGIES INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, NOVADAQ TECHNOLOGIES INC reported poor results of -$0.75 versus -$0.47 in the prior year.
  • 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 Health Care Equipment & Supplies industry. The net income has significantly decreased by 195.9% when compared to the same quarter one year ago, falling from $6.28 million to -$6.03 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, NOVADAQ TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has declined marginally to -$7.75 million or 1.72% 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.
  • The share price of NOVADAQ TECHNOLOGIES INC has not done very well: it is down 9.38% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

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