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

UIL Holdings

(

UIL

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

  • UIL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $25.4 million.
  • UIL has traded 221,719 shares today.
  • UIL is trading at 7.14 times the normal volume for the stock at this time of day.
  • UIL 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.

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

More details on UIL:

UIL Holdings Corporation, through its subsidiaries, operates in the regulated utility businesses. The company operates in the Electric Distribution, Electric Transmission, and Gas Distribution segments. The stock currently has a dividend yield of 3.8%. UIL has a PE ratio of 23. Currently there are 3 analysts that rate UIL Holdings a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for UIL Holdings has been 290,800 shares per day over the past 30 days. UIL has a market cap of $2.6 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.88 and a short float of 2.2% with 2.23 days to cover. Shares are up 5% year-to-date as of the close of trading on Monday.

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 UIL Holdings as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share and increase in net income. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 3.5%. Since the same quarter one year prior, revenues slightly increased by 2.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • UIL HOLDINGS CORP's earnings per share improvement from the most recent quarter was slightly positive. 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, UIL HOLDINGS CORP reported lower earnings of $1.93 versus $2.18 in the prior year. This year, the market expects an improvement in earnings ($2.40 versus $1.93).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Electric Utilities industry average, but is greater than that of the S&P 500. The net income increased by 3.9% when compared to the same quarter one year prior, going from $55.47 million to $57.61 million.
  • The debt-to-equity ratio of 1.27 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, UIL maintains a poor quick ratio of 0.85, which illustrates the inability to avoid short-term cash problems.

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.