Trade-Ideas LLC identified

Xencor

(

XNCR

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

  • XNCR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.4 million.
  • XNCR has traded 134,895 shares today.
  • XNCR is trading at 34.88 times the normal volume for the stock at this time of day.
  • XNCR is trading at a new high 23.13% 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 XNCR:

Xencor, Inc., a clinical-stage biopharmaceutical company, focuses on discovery and development of engineered monoclonal antibodies to treat severe and life-threatening diseases with unmet medical needs. Currently there are 3 analysts that rate Xencor a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Xencor has been 200,600 shares per day over the past 30 days. Xencor has a market cap of $546.0 million and is part of the health care sector and drugs industry. Shares are down 14.2% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Xencor as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • XNCR's very impressive revenue growth greatly exceeded the industry average of 19.5%. Since the same quarter one year prior, revenues leaped by 386.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • XNCR 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 2.72, which clearly demonstrates the ability to cover short-term cash needs.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Biotechnology industry average. The net income increased by 0.7% when compared to the same quarter one year prior, going from -$6.44 million to -$6.40 million.
  • XNCR'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 33.45%, 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. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • Net operating cash flow has significantly decreased to -$14.30 million or 583.22% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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