Trade-Ideas LLC identified

Unisys

(

UIS

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

  • UIS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.6 million.
  • UIS has traded 848,898 shares today.
  • UIS is trading at 23.51 times the normal volume for the stock at this time of day.
  • UIS is trading at a new high 23.02% 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 UIS:

Unisys Corporation provides information technology services worldwide. It operates through two segments, Services and Technology. The Services segment provides cloud and infrastructure services, application services, and business process outsourcing services. Currently there are 2 analysts that rate Unisys a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Unisys has been 720,300 shares per day over the past 30 days. Unisys has a market cap of $385.9 million and is part of the technology sector and computer software & services industry. The stock has a beta of 1.34 and a short float of 22.4% with 12.07 days to cover. Shares are down 28.1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Unisys as a

sell

. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • The gross profit margin for UNISYS CORP is rather low; currently it is at 20.40%. Regardless of UIS's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, UIS's net profit margin of -5.98% significantly underperformed when compared to the industry average.
  • UIS's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 62.65%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • UIS, with its decline in revenue, slightly underperformed the industry average of 6.5%. Since the same quarter one year prior, revenues slightly dropped by 7.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • UNISYS CORP has improved earnings per share by 8.0% in the most recent quarter compared to 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, UNISYS CORP swung to a loss, reporting -$2.21 versus $0.80 in the prior year. This year, the market expects an improvement in earnings (-$0.95 versus -$2.21).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the IT Services industry average. The net income increased by 7.6% when compared to the same quarter one year prior, going from -$43.20 million to -$39.90 million.

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