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

  • CSII has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.2 million.
  • CSII has traded 114,791 shares today.
  • CSII is trading at 18.38 times the normal volume for the stock at this time of day.
  • CSII is trading at a new high 6.30% 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 CSII:

Cardiovascular Systems, Inc., a medical device company, focuses on developing and commercializing minimally invasive treatment solutions for vascular diseases. Currently there are 7 analysts that rate Cardiovascular Systems a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Cardiovascular Systems has been 193,900 shares per day over the past 30 days. Cardiovascular Systems has a market cap of $970.4 million and is part of the health care sector and health services industry. The stock has a beta of 2.27 and a short float of 6.9% with 7.04 days to cover. Shares are up 2.3% 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 Cardiovascular Systems as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, 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 against the S&P 500 and did not exceed that of the Health Care Equipment & Supplies industry. The net income has decreased by 12.8% when compared to the same quarter one year ago, dropping from -$7.29 million to -$8.22 million.
  • In its most recent trading session, CSII has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • CARDIOVASCULAR SYSTEMS INC has improved earnings per share by 10.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, CARDIOVASCULAR SYSTEMS INC reported poor results of -$1.24 versus -$1.11 in the prior year. For the next year, the market is expecting a contraction of 1.6% in earnings (-$1.26 versus -$1.24).
  • 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, CARDIOVASCULAR SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CARDIOVASCULAR SYSTEMS INC is currently very high, coming in at 79.50%. 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 -19.88% 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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