Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified Micron Technology ( MU) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Micron Technology as such a stock due to the following factors:
- MU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $462.3 million.
- MU has traded 42.4 million shares today.
- MU is trading at 6.27 times the normal volume for the stock at this time of day.
- MU is trading at a new low 3.01% 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. EXCLUSIVE OFFER: Get the inside scoop on opportunities in MU with the Ticky from Trade-Ideas. See the FREE profile for MU NOW at Trade-Ideas More details on MU: Micron Technology, Inc., together with its subsidiaries, engages in the manufacture and marketing of semiconductor devices worldwide. Currently there are 14 analysts that rate Micron Technology a buy, 2 analysts rate it a sell, and 8 rate it a hold. The average volume for Micron Technology has been 38.9 million shares per day over the past 30 days. Micron Technology has a market cap of $14.2 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.84 and a short float of 7.6% with 2.20 days to cover. Shares are up 115.1% year to date as of the close of trading on Wednesday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Micron Technology as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and compelling growth in net income. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 9.4%. Since the same quarter one year prior, revenues slightly increased by 6.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 112.50% and other important driving factors, this stock has surged by 134.41% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- MICRON TECHNOLOGY INC reported significant earnings per share improvement 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, MICRON TECHNOLOGY INC swung to a loss, reporting -$1.04 versus $0.15 in the prior year. This year, the market expects an improvement in earnings (-$0.29 versus -$1.04).
- 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. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, MICRON TECHNOLOGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has declined marginally to $624.00 million or 9.03% when compared to the same quarter last year. Despite a decrease in cash flow of 9.03%, MICRON TECHNOLOGY INC is still significantly exceeding the industry average of -79.08%.
- You can view the full Micron Technology Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.