Trade-Ideas LLC identified

ARIAD Pharmaceuticals

(

ARIA

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

  • ARIA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $41.0 million.
  • ARIA has traded 632,540 shares today.
  • ARIA is trading at 3.87 times the normal volume for the stock at this time of day.
  • ARIA is trading at a new high 5.05% 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 ARIA:

ARIAD Pharmaceuticals, Inc., an oncology company, engages in the discovery, development, and commercialization of drugs for cancer patients in the United States and internationally. Currently there are 3 analysts that rate ARIAD Pharmaceuticals a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for ARIAD Pharmaceuticals has been 4.1 million shares per day over the past 30 days. ARIAD has a market cap of $1.6 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.86 and a short float of 17% with 6.31 days to cover. Shares are up 31.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates ARIAD Pharmaceuticals as a

sell

. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow, generally disappointing historical performance in the stock itself and deteriorating net income.

Highlights from the ratings report include:

  • Net operating cash flow has decreased to -$65.10 million or 29.68% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • ARIA has underperformed the S&P 500 Index, declining 10.38% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Biotechnology industry average. The net income has decreased by 2.1% when compared to the same quarter one year ago, dropping from -$52.68 million to -$53.79 million.
  • ARIAD PHARMACEUTICALS INC reported flat earnings per share in the most recent quarter. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, ARIAD PHARMACEUTICALS INC reported poor results of -$1.22 versus -$0.87 in the prior year. This year, the market expects an improvement in earnings (-$0.69 versus -$1.22).
  • The revenue growth greatly exceeded the industry average of 17.9%. Since the same quarter one year prior, revenues rose by 48.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.

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