Trade-Ideas LLC identified

Univar

(

UNVR

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

  • UNVR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.1 million.
  • UNVR has traded 99,266 shares today.
  • UNVR is trading at 18.50 times the normal volume for the stock at this time of day.
  • UNVR is trading at a new low 7.10% 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 UNVR with the Ticky from Trade-Ideas. See the FREE profile for UNVR NOW at Trade-Ideas

More details on UNVR:

Univar Inc. distributes commodity and specialty chemical products, and related services worldwide. UNVR has a PE ratio of 46. Currently there are 2 analysts that rate Univar a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Univar has been 379,200 shares per day over the past 30 days. Univar has a market cap of $2.5 billion and is part of the basic materials sector and chemicals industry. Shares are up 7.6% year-to-date as of the close of trading on Friday.

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 Univar as a

hold

. Among the primary strengths of the company is its respectable return on equity which we feel is likely to continue. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and generally higher debt management risk.

Highlights from the ratings report include:

  • UNIVAR INC's earnings per share declined by 28.6% 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, UNIVAR INC turned its bottom line around by earning $0.12 versus -$0.27 in the prior year. This year, the market expects an improvement in earnings ($0.67 versus $0.12).
  • Compared to other companies in the Trading Companies & Distributors industry and the overall market, UNIVAR INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • UNVR, with its decline in revenue, underperformed when compared the industry average of 0.1%. Since the same quarter one year prior, revenues fell by 13.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The debt-to-equity ratio is very high at 3.54 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, UNVR maintains a poor quick ratio of 0.91, which illustrates the inability to avoid short-term cash problems.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Trading Companies & Distributors industry. The net income has significantly decreased by 28.9% when compared to the same quarter one year ago, falling from $19.70 million to $14.00 million.

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.