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

Synnex

(

SNX

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

  • SNX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.3 million
  • SNX has traded 243,424 shares today
  • SNX is trading at 22.05 times the normal volume for the stock at this time of day
  • SNX is trading at a new low 12.0233110721289992994798012659884989261627197265625 below yesterday's close

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 SNX:

SYNNEX Corporation provides business process services to resellers, retailers, and original equipment manufacturers in the United States, Japan, and internationally. It operates in two segments, Technology Solutions and Concentrix. The stock currently has a dividend yield of 0.6%. SNX has a PE ratio of 18. Currently there are two analysts that rate Synnex a buy, no analysts rate it a sell, and two rate it a hold.

The average volume for Synnex has been 207,000 shares per day over the past 30 days. Synnex has a market cap of $3.29 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.63 and a short float of 13% with 14.14 days to cover. Shares are up 5.3% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Synnex as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, attractive valuation levels and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • SNX's revenue growth has slightly outpaced the industry average of 0.1%. Since the same quarter one year prior, revenues slightly increased by 5.8%. Growth in the company's revenue appears to have helped boost 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. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • SYNNEX CORP has improved earnings per share by 16.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SYNNEX CORP increased its bottom line by earning $4.58 versus $2.98 in the prior year. This year, the market expects an improvement in earnings ($6.70 versus $4.58).
  • Net operating cash flow has significantly increased by 694.47% to $208.18 million when compared to the same quarter last year. In addition, SYNNEX CORP has also vastly surpassed the industry average cash flow growth rate of -28.89%.

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