Tableau Software (DATA) 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.

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

  • DATA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $206.1 million.
  • DATA has traded 315,195 shares today.
  • DATA is trading at 3.47 times the normal volume for the stock at this time of day.
  • DATA is trading at a new high 3.02% 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 DATA:

Tableau Software, Inc., together with its subsidiaries, provides business analytics software products in the United States, Canada, and internationally. DATA has a PE ratio of 2752. Currently there are 18 analysts that rate Tableau Software a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Tableau Software has been 997,500 shares per day over the past 30 days. Tableau Software has a market cap of $5.5 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.75 and a short float of 5.6% with 1.47 days to cover. Shares are up 32% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Tableau Software as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity 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 when compared to that of the S&P 500 and the Software industry. The net income has significantly decreased by 78.1% when compared to the same quarter one year ago, falling from -$5.63 million to -$10.03 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 Software industry and the overall market, TABLEAU SOFTWARE INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • TABLEAU SOFTWARE INC 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. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, TABLEAU SOFTWARE INC reported lower earnings of $0.04 versus $0.15 in the prior year. This year, the market expects an improvement in earnings ($0.38 versus $0.04).
  • The gross profit margin for TABLEAU SOFTWARE INC is currently very high, coming in at 91.84%. Regardless of DATA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, DATA's net profit margin of -7.70% significantly underperformed when compared to the industry average.
  • Net operating cash flow has significantly increased by 144.33% to $35.00 million when compared to the same quarter last year. In addition, TABLEAU SOFTWARE INC has also vastly surpassed the industry average cash flow growth rate of -15.51%.

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