IDEXX Laboratories (IDXX) Flagged As Strong On High Volume

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

  • IDXX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $44.6 million
  • IDXX has traded 435,972 shares today
  • IDXX is trading at 2.9 times the normal volume for the stock at this time of day
  • IDXX is trading at a new high 3.046001991740399983399356642621569335460662841796875 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 IDXX:

IDEXX Laboratories, Inc., together with its subsidiaries, develops, manufactures, and distributes products and services primarily for the companion animal veterinary, livestock and poultry, water testing, and dairy markets worldwide. IDXX has a PE ratio of 35. Currently there are five analysts that rate IDEXX Laboratories a buy, two analysts rate it a sell, and one rates it a hold.

The average volume for IDEXX Laboratories has been 877,800 shares per day over the past 30 days. IDEXX has a market cap of $6.03 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.76 and a short float of 9.8% with 13.73 days to cover. Shares are down 14.1% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates IDEXX Laboratories as a hold. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, generally higher debt management risk and weak operating cash flow.

Highlights from the ratings report include:
  • IDEXX LABS INC has improved earnings per share by 10.1% 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. This trend suggests that the performance of the business is improving. During the past fiscal year, IDEXX LABS INC increased its bottom line by earning $1.78 versus $1.74 in the prior year. This year, the market expects an improvement in earnings ($2.09 versus $1.78).
  • IDXX's revenue growth trails the industry average of 21.4%. Since the same quarter one year prior, revenues slightly increased by 6.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Net operating cash flow has significantly decreased to -$14.64 million or 143.68% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • In its most recent trading session, IDXX has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.

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