Trade-Ideas LLC identified

Syntel

(

SYNT

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

  • SYNT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.6 million.
  • SYNT has traded 73,208 shares today.
  • SYNT is trading at 5.70 times the normal volume for the stock at this time of day.
  • SYNT is trading at a new high 4.03% 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 SYNT:

Syntel, Inc. provides digital transformation, information technology (IT), and knowledge process outsourcing (KPO) services worldwide. The company operates through Banking and Financial Services; Healthcare and Life Sciences; Insurance; Manufacturing; and Retail, Logistics and Telecom segments. SYNT has a PE ratio of 16. Currently there are 4 analysts that rate Syntel a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Syntel has been 181,400 shares per day over the past 30 days. Syntel has a market cap of $3.9 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.91 and a short float of 3.3% with 8.99 days to cover. Shares are up 3.6% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Syntel as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and increase in net income. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 18.3%. Since the same quarter one year prior, revenues slightly increased by 7.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • SYNT's debt-to-equity ratio is very low at 0.11 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 4.89, which clearly demonstrates the ability to cover short-term cash needs.
  • 43.39% is the gross profit margin for SYNTEL INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 29.15% is above that of the industry average.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the IT Services industry average. The net income increased by 5.0% when compared to the same quarter one year prior, going from $70.70 million to $74.24 million.

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