Skip to main content

Trade-Ideas LLC identified

Cubic

(

CUB

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

  • CUB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.6 million.
  • CUB has traded 50,937 shares today.
  • CUB is trading at 16.87 times the normal volume for the stock at this time of day.
  • CUB is trading at a new high 5.29% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in CUB with the Ticky from Trade-Ideas. See the FREE profile for CUB NOW at Trade-Ideas

More details on CUB:

Cubic Corporation designs, develops, manufactures, and sells mass transit fare collection systems, air and ground combat training systems, and secure communications products for various federal and regional government agencies in the United States and internationally. The stock currently has a dividend yield of 0.7%. CUB has a PE ratio of 33. Currently there are 4 analysts that rate Cubic a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Cubic has been 160,200 shares per day over the past 30 days. Cubic has a market cap of $1.1 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.96 and a short float of 6.9% with 15.63 days to cover. Shares are down 13.6% year-to-date as of the close of trading on Friday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Cubic as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:

  • CUB's revenue growth has slightly outpaced the industry average of 0.3%. Since the same quarter one year prior, revenues slightly increased by 8.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.60, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.24, which illustrates the ability to avoid short-term cash problems.
  • CUBIC CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CUBIC CORP reported lower earnings of $0.85 versus $2.58 in the prior year. This year, the market expects an improvement in earnings ($1.29 versus $0.85).
  • The gross profit margin for CUBIC CORP is rather low; currently it is at 23.82%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.77% trails that of the industry average.
  • Net operating cash flow has significantly decreased to $11.89 million or 77.48% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.