Trade-Ideas LLC identified

STMicroelectronics

(

STM

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

  • STM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.5 million.
  • STM has traded 319,433 shares today.
  • STM is trading at 2.02 times the normal volume for the stock at this time of day.
  • STM is trading at a new high 3.01% 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 STM:

STMicroelectronics N.V. designs, develops, manufactures, and markets various semiconductor integrated circuits and discrete devices worldwide. The stock currently has a dividend yield of 5.2%. STM has a PE ratio of 47. Currently there is 1 analyst that rates STMicroelectronics a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for STMicroelectronics has been 1.5 million shares per day over the past 30 days. STMicroelectronics has a market cap of $6.0 billion and is part of the technology sector and electronics industry. Shares are down 15.4% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates STMicroelectronics as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and unimpressive growth in net income.

Highlights from the ratings report include:

  • The current debt-to-equity ratio, 0.39, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, STM has a quick ratio of 1.55, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has significantly increased by 218.57% to $223.00 million when compared to the same quarter last year. In addition, STMICROELECTRONICS NV has also vastly surpassed the industry average cash flow growth rate of -22.77%.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 11.5%. Since the same quarter one year prior, revenues slightly dropped by 5.6%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Semiconductors & Semiconductor Equipment industry average. The net income has decreased by 10.5% when compared to the same quarter one year ago, dropping from $38.00 million to $34.00 million.
  • STM has underperformed the S&P 500 Index, declining 14.46% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.

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