Trade-Ideas LLC identified

Five9

(

FIVN

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Five9 as such a stock due to the following factors:

  • FIVN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.6 million.
  • FIVN has traded 180,610 shares today.
  • FIVN is trading at 3.34 times the normal volume for the stock at this time of day.
  • FIVN is trading at a new high 3.23% 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 FIVN:

Five9, Inc., together with its subsidiaries, provides cloud software for contact centers in the United States and internationally. Currently there are 3 analysts that rate Five9 a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Five9 has been 387,900 shares per day over the past 30 days. Five9 has a market cap of $460.7 million and is part of the technology sector and computer software & services industry. Shares are up 3.3% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Five9 as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally high debt management risk.

Highlights from the ratings report include:

  • 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 Internet Software & Services industry and the overall market, FIVE9 INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Currently the debt-to-equity ratio of 1.77 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Even though the debt-to-equity ratio is weak, FIVN's quick ratio is somewhat strong at 1.42, demonstrating the ability to handle short-term liquidity needs.
  • The gross profit margin for FIVE9 INC is rather high; currently it is at 60.72%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -9.76% is in-line with the industry average.
  • Net operating cash flow has significantly increased by 98.12% to -$0.07 million when compared to the same quarter last year. In addition, FIVE9 INC has also vastly surpassed the industry average cash flow growth rate of 4.60%.
  • This stock has increased by 56.72% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in FIVN do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

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