Exact (EXAS) Weak 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.

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

  • EXAS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $43.0 million.
  • EXAS has traded 165,008 shares today.
  • EXAS is trading at 2.40 times the normal volume for the stock at this time of day.
  • EXAS is trading at a new low 3.19% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 EXAS:

Exact Sciences Corporation, a molecular diagnostics company, focuses on developing non-invasive colorectal cancer screening products. Currently there are 8 analysts that rate Exact a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Exact has been 1.8 million shares per day over the past 30 days. Exact has a market cap of $2.0 billion and is part of the health care sector and health services industry. The stock has a beta of 0.85 and a short float of 36.7% with 16.53 days to cover. Shares are down 19.8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Exact as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:
  • EXACT SCIENCES CORP 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. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, EXACT SCIENCES CORP reported poor results of -$1.24 versus -$0.69 in the prior year. For the next year, the market is expecting a contraction of 31.4% in earnings (-$1.63 versus -$1.24).
  • 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 Biotechnology industry. The net income has significantly decreased by 166.2% when compared to the same quarter one year ago, falling from -$12.19 million to -$32.44 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Biotechnology industry and the overall market, EXACT SCIENCES CORP'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 -$30.92 million or 222.50% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Compared to its closing price of one year ago, EXAS's share price has jumped by 74.16%, exceeding the performance of the broader market during that same time frame. Regarding the future course of this stock, we feel that the risks involved in investing in EXAS do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

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