Strong On High Volume: Oclaro (OCLR)
Trade-Ideas LLC identified Oclaro ( OCLR) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Oclaro as such a stock due to the following factors:
- OCLR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.3 million.
- OCLR has traded 600,967 shares today.
- OCLR is trading at 2.10 times the normal volume for the stock at this time of day.
- OCLR is trading at a new high 5.05% 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 OCLR: Oclaro, Inc. designs, manufactures, and markets lasers and optical components, modules, and subsystems for the optical communications, industrial, and consumer laser markets worldwide. Currently there are 5 analysts that rate Oclaro a buy, no analysts rate it a sell, and 1 rates it a hold. The average volume for Oclaro has been 3.3 million shares per day over the past 30 days. Oclaro has a market cap of $560.8 million and is part of the technology sector and electronics industry. The stock has a beta of 1.57 and a short float of 31.4% with 9.78 days to cover. Shares are up 45.1% year-to-date as of the close of trading on Monday.
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Analysis:
rates Oclaro as a
. Among the areas we feel are negative, one of the most important has been poor profit margins. Highlights from the ratings report include:
- The gross profit margin for OCLARO INC is currently lower than what is desirable, coming in at 32.19%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, OCLR's net profit margin of 0.16% is significantly lower than the industry average.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Communications Equipment industry and the overall market, OCLARO INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The current debt-to-equity ratio, 0.43, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, OCLR has a quick ratio of 1.86, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has significantly increased by 146.33% to $10.94 million when compared to the same quarter last year. In addition, OCLARO INC has also vastly surpassed the industry average cash flow growth rate of 38.81%.
- This stock has increased by 147.08% 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 OCLR do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
- You can view the full Oclaro Ratings Report.
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