Trade-Ideas LLC identified

Greatbatch

(

GB

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

  • GB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.3 million.
  • GB has traded 54,128 shares today.
  • GB is trading at 7.61 times the normal volume for the stock at this time of day.
  • GB is trading at a new low 5.00% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in GB with the Ticky from Trade-Ideas. See the FREE profile for GB NOW at Trade-Ideas

More details on GB:

Greatbatch, Inc. designs, manufactures, and sells medical devices and components for the cardiac, neuromodulation, orthopaedics, portable medical, vascular, energy, and clinical markets worldwide. It operates in two segments, Greatbatch Medical and QiG Group. GB has a PE ratio of 45. Currently there are 4 analysts that rate Greatbatch a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Greatbatch has been 219,100 shares per day over the past 30 days. Greatbatch has a market cap of $1.6 billion and is part of the health care sector and health services industry. The stock has a beta of 0.72 and a short float of 3% with 3.73 days to cover. Shares are up 8.6% year-to-date as of the close of trading on Monday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Greatbatch as a

buy

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

Highlights from the ratings report include:

  • GB's debt-to-equity ratio is very low at 0.28 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, GB has a quick ratio of 1.54, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 39.88% is the gross profit margin for GREATBATCH INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 0.01% trails the industry average.
  • GREATBATCH INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GREATBATCH INC increased its bottom line by earning $2.14 versus $1.44 in the prior year. This year, the market expects an improvement in earnings ($2.85 versus $2.14).
  • The revenue fell significantly faster than the industry average of 30.2%. Since the same quarter one year prior, revenues fell by 14.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing 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, despite the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.