Heavy Early Morning Activity On Qualys (QLYS)

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 Qualys ( QLYS) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Qualys as such a stock due to the following factors:

  • QLYS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $23.4 million.
  • QLYS traded 66,928 shares today in the pre-market hours as of 7:54 AM, representing 12% of its average daily volume.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in QLYS with the Ticky from Trade-Ideas. See the FREE profile for QLYS NOW at Trade-Ideas

More details on QLYS:

Qualys, Inc. provides cloud security and compliance solutions in the United States and internationally. QLYS has a PE ratio of 61.1. Currently there are 3 analysts that rate Qualys a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Qualys has been 441,400 shares per day over the past 30 days. Qualys has a market cap of $1.7 billion and is part of the technology sector and computer software & services industry. The stock has a beta of -0.60 and a short float of 3.2% with 1.60 days to cover. Shares are up 38.1% year-to-date as of the close of trading on Friday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Qualys 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, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 0.6%. Since the same quarter one year prior, revenues rose by 25.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • QLYS 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, QLYS has a quick ratio of 1.65, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 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 Software industry and the overall market, QUALYS INC's return on equity exceeds that of both the industry average and the S&P 500.
  • This stock has managed to rise its share value by 156.71% over the past twelve months. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • The gross profit margin for QUALYS INC is currently very high, coming in at 87.83%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 70.85% significantly outperformed against the industry average.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

Flashback Friday: The Market Movers

Flashback Friday: The Market Movers