Trade-Ideas LLC identified

Universal Electronics

(

UEIC

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

  • UEIC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.1 million.
  • UEIC has traded 52,765 shares today.
  • UEIC is trading at 14.32 times the normal volume for the stock at this time of day.
  • UEIC is trading at a new high 4.01% 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 UEIC:

TheStreet Recommends

Universal Electronics Inc. develops and manufactures pre-programmed and universal wireless remote control products, audio-video accessories, and software home entertainment systems. UEIC has a PE ratio of 34. Currently there are 2 analysts that rate Universal Electronics a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Universal Electronics has been 146,100 shares per day over the past 30 days. Universal has a market cap of $931.8 million and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 1.69 and a short float of 7.5% with 4.19 days to cover. Shares are up 22.4% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Universal Electronics as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and notable return on equity. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 5.4%. Since the same quarter one year prior, revenues rose by 17.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
  • UNIVERSAL ELECTRONICS INC has improved earnings per share by 16.4% 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, UNIVERSAL ELECTRONICS INC reported lower earnings of $1.89 versus $2.02 in the prior year. This year, the market expects an improvement in earnings ($3.38 versus $1.89).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Household Durables industry average. The net income increased by 4.9% when compared to the same quarter one year prior, going from $8.90 million to $9.34 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Household Durables industry and the overall market, UNIVERSAL ELECTRONICS INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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