Trade-Ideas LLC identified

FLIR Systems

(

FLIR

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

  • FLIR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $25.0 million.
  • FLIR has traded 139,653 shares today.
  • FLIR is trading at 4.27 times the normal volume for the stock at this time of day.
  • FLIR is trading at a new low 5.01% 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 FLIR:

FLIR Systems, Inc. designs, develops, manufactures, and markets thermal imaging, visible-light imaging systems, locater systems, measurement and diagnostic systems, and threat-detection solutions worldwide. The stock currently has a dividend yield of 1.5%. FLIR has a PE ratio of 23. Currently there are 5 analysts that rate FLIR Systems a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for FLIR Systems has been 742,000 shares per day over the past 30 days. FLIR Systems has a market cap of $4.4 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.60 and a short float of 1.6% with 2.89 days to cover. Shares are up 16.6% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates FLIR Systems as a

buy

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

Highlights from the ratings report include:

  • FLIR's revenue growth has slightly outpaced the industry average of 3.0%. Since the same quarter one year prior, revenues rose by 10.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • FLIR's debt-to-equity ratio is very low at 0.21 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, FLIR has a quick ratio of 1.51, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 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. 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 gross profit margin for FLIR SYSTEMS INC is rather high; currently it is at 50.50%. Regardless of FLIR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 0.29% trails the industry average.
  • FLIR SYSTEMS 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. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, FLIR SYSTEMS INC increased its bottom line by earning $1.73 versus $1.40 in the prior year. For the next year, the market is expecting a contraction of 6.3% in earnings ($1.62 versus $1.73).

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