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

  • ORBK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.4 million.
  • ORBK has traded 93,154 shares today.
  • ORBK is trading at 6.36 times the normal volume for the stock at this time of day.
  • ORBK is trading at a new high 3.05% 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 ORBK:

Orbotech Ltd. provides yield-enhancing and production solutions for printed circuit boards (PCBs), liquid crystal displays (LCDs), and semiconductor devices in China, Taiwan, North America, Korea, Europe, Japan, and internationally. ORBK has a PE ratio of 24. Currently there are 3 analysts that rate Orbotech a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Orbotech has been 192,800 shares per day over the past 30 days. Orbotech has a market cap of $819.4 million and is part of the technology sector and electronics industry. The stock has a beta of 0.32 and a short float of 0.3% with 0.38 days to cover. Shares are up 39.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Orbotech as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, attractive valuation levels, increase in net income and good cash flow from operations. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • ORBK's very impressive revenue growth greatly exceeded the industry average of 0.0%. Since the same quarter one year prior, revenues leaped by 76.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 86.66% and other important driving factors, this stock has surged by 32.38% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, ORBK should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 87.7% when compared to the same quarter one year prior, rising from $6.29 million to $11.80 million.
  • Net operating cash flow has significantly increased by 1200.20% to $21.64 million when compared to the same quarter last year. In addition, ORBOTECH LTD has also vastly surpassed the industry average cash flow growth rate of -27.06%.

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