Trade-Ideas LLC identified

Abaxis

(

ABAX

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

  • ABAX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.0 million.
  • ABAX has traded 87,665 shares today.
  • ABAX is trading at 14.50 times the normal volume for the stock at this time of day.
  • ABAX is trading at a new high 17.05% 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 ABAX:

TST Recommends

Abaxis, Inc. develops, manufactures, markets, and sells portable blood analysis systems for use in human or veterinary patient care settings to provide blood constituent measurements for clinicians worldwide. It operates in two segments, Medical Market and Veterinary Market. The stock currently has a dividend yield of 1%. ABAX has a PE ratio of 43. Currently there is 1 analyst that rates Abaxis a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Abaxis has been 169,100 shares per day over the past 30 days. Abaxis has a market cap of $980.7 million and is part of the health care sector and health services industry. The stock has a beta of 0.07 and a short float of 21.8% with 13.57 days to cover. Shares are down 23.7% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Abaxis as a

buy

. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • ABAXIS INC has improved earnings per share by 34.8% 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 year. We feel that this trend should continue. During the past fiscal year, ABAXIS INC increased its bottom line by earning $0.92 versus $0.72 in the prior year. This year, the market expects an improvement in earnings ($1.24 versus $0.92).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income increased by 48.4% when compared to the same quarter one year prior, rising from $4.72 million to $7.00 million.
  • ABAX's revenue growth trails the industry average of 35.9%. Since the same quarter one year prior, revenues rose by 20.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • ABAX's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 5.51, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for ABAXIS INC is rather high; currently it is at 55.36%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 13.17% is above that of the industry average.

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