Ixia (XXIA) Is Strong On High Volume Today

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

  • XXIA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.9 million.
  • XXIA has traded 56,241 shares today.
  • XXIA is trading at 2.16 times the normal volume for the stock at this time of day.
  • XXIA is trading at a new high 3.11% 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 XXIA:

Ixia provides converged Internet protocol (IP) network validation and network visibility solutions in the United States and internationally. Its solutions are used to design, verify, and monitor a range of Ethernet, Wi-Fi, 3G, and 4G/LTE equipment and networks. Currently there is 1 analyst that rates Ixia a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Ixia has been 457,100 shares per day over the past 30 days. Ixia has a market cap of $711.5 million and is part of the technology sector and internet industry. Shares are down 32.3% year-to-date as of the close of trading on Tuesday.

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 Ixia as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Communications Equipment industry. The net income has significantly decreased by 599.7% when compared to the same quarter one year ago, falling from $3.02 million to -$15.08 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Communications Equipment industry and the overall market, IXIA's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to $3.24 million or 86.82% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 39.36%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 575.00% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • IXIA has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, IXIA reported lower earnings of $0.15 versus $0.58 in the prior year. This year, the market expects an improvement in earnings ($0.29 versus $0.15).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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