Cerus (CERS) Strong On High Relative 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 Cerus ( CERS) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Cerus as such a stock due to the following factors:

  • CERS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.0 million.
  • CERS has traded 479,968 shares today.
  • CERS is trading at 7.32 times the normal volume for the stock at this time of day.
  • CERS is trading at a new high 10.02% 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 CERS:

Cerus Corporation, together with its subsidiary, Cerus Europe B.V., operates as a biomedical products company in Europe, the Commonwealth of Independent States, and the Middle East. The company develops and commercializes the INTERCEPT Blood System to enhance blood safety. Currently there are 3 analysts that rate Cerus a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Cerus has been 935,900 shares per day over the past 30 days. Cerus has a market cap of $328.7 million and is part of the health care sector and drugs industry. The stock has a beta of 2.54 and a short float of 19% with 11.27 days to cover. Shares are down 34.9% 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 Cerus as a sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • CERS'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 32.55%, 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, CERUS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • CERS, with its decline in revenue, slightly underperformed the industry average of 4.3%. Since the same quarter one year prior, revenues slightly dropped by 1.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • CERUS CORP has improved earnings per share by 48.3% 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, CERUS CORP reported poor results of -$0.64 versus -$0.36 in the prior year. This year, the market expects an improvement in earnings (-$0.51 versus -$0.64).
  • 44.61% is the gross profit margin for CERUS CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -103.83% is in-line with the industry average.

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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