Trade-Ideas LLC identified

Aceto

(

ACET

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

  • ACET has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.9 million.
  • ACET has traded 88,970 shares today.
  • ACET is trading at 9.89 times the normal volume for the stock at this time of day.
  • ACET is trading at a new low 10.11% 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 ACET:

Aceto Corporation, together with its subsidiaries, sources, markets, sells, and distributes pharmaceutical intermediates and active ingredients, finished dosage form generics, nutraceutical products, agricultural protection products, and specialty chemicals. The stock currently has a dividend yield of 0.9%. ACET has a PE ratio of 21. Currently there is 1 analyst that rates Aceto a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Aceto has been 227,600 shares per day over the past 30 days. Aceto has a market cap of $826.9 million and is part of the health care sector and drugs industry. The stock has a beta of 1.03 and a short float of 3.3% with 4.38 days to cover. Shares are up 27.2% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Aceto as a

buy

. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • ACETO CORP reported significant earnings per share improvement 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 year. We feel that this trend should continue. During the past fiscal year, ACETO CORP increased its bottom line by earning $1.15 versus $1.02 in the prior year. This year, the market expects an improvement in earnings ($1.66 versus $1.15).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Providers & Services industry. The net income increased by 92.6% when compared to the same quarter one year prior, rising from $4.83 million to $9.30 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.1%. Since the same quarter one year prior, revenues slightly increased by 2.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.42, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, ACET has a quick ratio of 2.01, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 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 Health Care Providers & Services industry and the overall market on the basis of return on equity, ACETO CORP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

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