Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified

Maxwell Technologies

(

MXWL

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

  • MXWL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.9 million.
  • MXWL has traded 135,155 shares today.
  • MXWL is trading at 4.36 times the normal volume for the stock at this time of day.
  • MXWL is trading at a new high 4.11% 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 MXWL:

Maxwell Technologies, Inc., together with its subsidiaries, develops, manufactures, and markets energy storage and power delivery products worldwide. Currently there are 3 analysts that rate Maxwell Technologies a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Maxwell Technologies has been 411,500 shares per day over the past 30 days. Maxwell has a market cap of $232.0 million and is part of the technology sector and electronics industry. Shares are down 12.1% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Maxwell Technologies as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

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 Electronic Equipment, Instruments & Components industry and the overall market, MAXWELL TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$12.41 million or 157.33% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • MXWL'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 39.76%, 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. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • MAXWELL TECHNOLOGIES INC has improved earnings per share by 30.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, MAXWELL TECHNOLOGIES INC swung to a loss, reporting -$0.21 versus $0.22 in the prior year. For the next year, the market is expecting a contraction of 4.8% in earnings (-$0.22 versus -$0.21).
  • 40.52% is the gross profit margin for MAXWELL TECHNOLOGIES INC which we consider to be strong. Regardless of MXWL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MXWL's net profit margin of -4.00% significantly underperformed when compared to the industry average.

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