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 $25.1 million.
  • SNX has traded 65,822 shares today.
  • SNX is trading at 12.10 times the normal volume for the stock at this time of day.
  • SNX is trading at a new low 5.06% 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, original equipment manufacturers, and financial and insurance institutions in the United States, North and South America, the Asia-Pacific, Europe, and internationally. The stock currently has a dividend yield of 0.8%. SNX has a PE ratio of 19. Currently there is 1 analyst that rates Synnex a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Synnex has been 356,200 shares per day over the past 30 days. Synnex has a market cap of $4.0 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.20 and a short float of 8% with 7.12 days to cover. Shares are up 13.2% year-to-date as of the close of trading on Tuesday.

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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 solid stock price performance, growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 28.08% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SNX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • SYNNEX CORP has improved earnings per share by 8.3% 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 $5.23 versus $4.58 in the prior year. This year, the market expects an improvement in earnings ($6.78 versus $5.23).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 8.9% when compared to the same quarter one year prior, going from $57.08 million to $62.16 million.
  • The current debt-to-equity ratio, 0.41, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.14, which illustrates the ability to avoid short-term cash problems.

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