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.

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

  • MANH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.3 million.
  • MANH has traded 57,835 shares today.
  • MANH is trading at 4.02 times the normal volume for the stock at this time of day.
  • MANH is trading at a new high 5.07% 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 MANH:

Manhattan Associates, Inc. develops, sells, deploys, services, and maintains software solutions to manage supply chains, inventory, and omni-channel operations for retailers, wholesalers, manufacturers, logistics providers, and other organizations. MANH has a PE ratio of 48.9. Currently there is 1 analyst that rates Manhattan Associates a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Manhattan Associates has been 425,800 shares per day over the past 30 days. Manhattan Associates has a market cap of $3.9 billion and is part of the technology sector and computer software & services industry. Shares are up 26.5% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Manhattan Associates as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, solid stock price performance and impressive record of earnings per share growth. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 9.9%. Since the same quarter one year prior, revenues rose by 21.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • MANH has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, MANH has a quick ratio of 1.72, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Software industry and the overall market, MANHATTAN ASSOCIATES INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 58.36% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MANH should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • MANHATTAN ASSOCIATES INC has improved earnings per share by 22.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MANHATTAN ASSOCIATES INC increased its bottom line by earning $1.08 versus $0.87 in the prior year. This year, the market expects an improvement in earnings ($1.29 versus $1.08).

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