Trade-Ideas LLC identified

Luminex

(

LMNX

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

  • LMNX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.7 million.
  • LMNX has traded 78,157 shares today.
  • LMNX is trading at 7.73 times the normal volume for the stock at this time of day.
  • LMNX is trading at a new high 11.02% 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 LMNX:

Luminex Corporation develops, manufactures, and sells proprietary biological testing technologies and products for the diagnostics and life sciences industries worldwide. LMNX has a PE ratio of 27. Currently there is 1 analyst that rates Luminex a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Luminex has been 276,700 shares per day over the past 30 days. Luminex has a market cap of $826.4 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 13.6% with 16.37 days to cover. Shares are down 11.8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Luminex as a

buy

. 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, reasonable valuation levels, compelling growth in net income and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • LMNX's revenue growth has slightly outpaced the industry average of 3.5%. Since the same quarter one year prior, revenues slightly increased by 6.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • LMNX has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 5.92, which clearly demonstrates the ability to cover short-term cash needs.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Life Sciences Tools & Services industry average. The net income increased by 15.4% when compared to the same quarter one year prior, going from $5.55 million to $6.40 million.
  • The gross profit margin for LUMINEX CORP is currently very high, coming in at 73.34%. 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 10.56% trails the industry average.

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