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

Thomson Reuters

(

TRI

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

  • TRI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.0 million.
  • TRI has traded 85,568 shares today.
  • TRI is trading at 2.54 times the normal volume for the stock at this time of day.
  • TRI is trading at a new high 3.00% 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 TRI:

Thomson Reuters Corporation provides intelligent information for businesses and professionals worldwide. The company sells electronic content and services to professionals primarily on a subscription basis. The stock currently has a dividend yield of 3.6%. TRI has a PE ratio of 16. Currently there are 3 analysts that rate Thomson Reuters a buy, no analysts rate it a sell, and 9 rate it a hold.

The average volume for Thomson Reuters has been 690,500 shares per day over the past 30 days. Thomson Reuters has a market cap of $29.3 billion and is part of the services sector and media industry. Shares are down 6.6% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Thomson Reuters as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from the ratings report include:

  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Media industry average. The net income increased by 8.2% when compared to the same quarter one year prior, going from $282.00 million to $305.00 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Media industry and the overall market, THOMSON-REUTERS CORP's return on equity exceeds that of both the industry average and the S&P 500.
  • After a year of stock price fluctuations, the net result is that TRI's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
  • TRI, with its decline in revenue, slightly underperformed the industry average of 6.8%. Since the same quarter one year prior, revenues slightly dropped by 2.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The gross profit margin for THOMSON-REUTERS CORP is currently lower than what is desirable, coming in at 27.69%. Regardless of TRI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 10.01% trails the industry average.

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