Logitech International (LOGI) Is Today's Strong On High Volume Stock

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

  • LOGI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.8 million.
  • LOGI has traded 130,497 shares today.
  • LOGI is trading at 4.80 times the normal volume for the stock at this time of day.
  • LOGI is trading at a new high 3.03% 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 LOGI:

Logitech International S.A., together with its subsidiaries, engages in the development and marketing of hardware and software products. The stock currently has a dividend yield of 1.1%. LOGI has a PE ratio of 19. Currently there are no analysts that rate Logitech International a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Logitech International has been 324,800 shares per day over the past 30 days. Logitech International has a market cap of $2.5 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 0.38 and a short float of 8.9% with 46.73 days to cover. Shares are up 13% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Logitech International as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, notable return on equity and solid stock price performance. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • LOGI 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. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.46, which illustrates the ability to avoid short-term cash problems.
  • LOGITECH INTERNATIONAL SA reported significant earnings per share improvement 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, LOGITECH INTERNATIONAL SA increased its bottom line by earning $0.82 versus $0.45 in the prior year. This year, the market expects an improvement in earnings ($0.82 versus $0.82).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Computers & Peripherals industry average. The net income increased by 57.4% when compared to the same quarter one year prior, rising from $10.62 million to $16.72 million.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
  • 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 Computers & Peripherals industry and the overall market on the basis of return on equity, LOGITECH INTERNATIONAL SA has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

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