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

  • TNET has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.1 million.
  • TNET has traded 395,760 shares today.
  • TNET is trading at 14.44 times the normal volume for the stock at this time of day.
  • TNET is trading at a new high 12.11% 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 TNET: TriNet Group, Inc. provides human resources solutions for small and medium-sized businesses in the United States and Canada. TNET has a PE ratio of 38. Currently there are 3 analysts that rate Trinet Group a buy, no analysts rate it a sell, and 3 rate it a hold. The average volume for Trinet Group has been 713,400 shares per day over the past 30 days. Trinet Group has a market cap of $1.2 billion and is part of the services sector and diversified services industry. Shares are down 14.2% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Trinet Group as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, generally high debt management risk, poor profit margins and weak operating cash flow. Highlights from the ratings report include:

  • TNET'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 52.56%, 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. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, TNET is still more expensive than most of the other companies in its industry.
  • The debt-to-equity ratio is very high at 61.84 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.34, which clearly demonstrates the inability to cover short-term cash needs.
  • The gross profit margin for TRINET GROUP INC is rather low; currently it is at 15.14%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.94% trails that of the industry average.
  • Net operating cash flow has significantly decreased to $26.08 million or 52.46% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • TRINET GROUP INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, TRINET GROUP INC increased its bottom line by earning $0.44 versus $0.21 in the prior year. This year, the market expects an improvement in earnings ($1.16 versus $0.44).

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