Tech Data (TECD) Weak On High Volume
Trade-Ideas LLC identified Tech Data ( TECD) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Tech Data as such a stock due to the following factors:
- TECD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.9 million.
- TECD has traded 60,558 shares today.
- TECD is trading at 7.06 times the normal volume for the stock at this time of day.
- TECD is trading at a new low 6.01% 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 TECD: Tech Data Corporation engages in the wholesale distribution of technology products. TECD has a PE ratio of 1. Currently there is 1 analyst that rates Tech Data a buy, 2 analysts rate it a sell, and 2 rate it a hold. The average volume for Tech Data has been 327,100 shares per day over the past 30 days. Tech Data has a market cap of $2.5 billion and is part of the services sector and wholesale industry. The stock has a beta of 0.75 and a short float of 8.7% with 10.86 days to cover. Shares are up 3.5% year-to-date as of the close of trading on Friday.
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Analysis:
rates Tech Data as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, notable return on equity, attractive valuation levels and compelling growth in net income. We feel its strengths outweigh the fact that the company shows low profit margins. Highlights from the ratings report include:
- TECD's revenue growth has slightly outpaced the industry average of 1.0%. Since the same quarter one year prior, revenues slightly increased by 2.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. 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.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, TECH DATA CORP's return on equity exceeds that of both the industry average and the S&P 500.
- 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 19.2% when compared to the same quarter one year prior, going from $80.68 million to $96.15 million.
- You can view the full Tech Data Ratings Report.
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