Trade-Ideas LLC identified
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Wright Medical Group as such a stock due to the following factors:
- WMGI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.7 million.
- WMGI has traded 253,428 shares today.
- WMGI is trading at 2.18 times the normal volume for the stock at this time of day.
- WMGI is trading at a new high 3.02% 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 WMGI:
Wright Medical Group N.V., a medical device company, designs, manufactures, markets, and sells orthopedic products in the United States, Europe, and internationally. Currently there are 10 analysts that rate Wright Medical Group a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for Wright Medical Group has been 960,300 shares per day over the past 30 days. Wright Medical Group has a market cap of $1.8 billion and is part of the health care sector and health services industry. The stock has a beta of 0.42 and a short float of 10.3% with 11.87 days to cover. Shares are down 28.2% year-to-date as of the close of trading on Wednesday.
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rates Wright Medical Group as a
. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- Net operating cash flow has significantly decreased to -$54.03 million or 81.00% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- WMGI'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 29.49%, 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.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, WRIGHT MEDICAL GROUP NV's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for WRIGHT MEDICAL GROUP NV is currently very high, coming in at 82.19%. Regardless of WMGI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, WMGI's net profit margin of -59.77% significantly underperformed when compared to the industry average.
- 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 Health Care Equipment & Supplies industry average. The net income increased by 4.9% when compared to the same quarter one year prior, going from -$111.23 million to -$105.78 million.
- You can view the full Wright Medical Group Ratings Report.