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

  • STRZA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.4 million.
  • STRZA has traded 823,815 shares today.
  • STRZA is trading at 50.96 times the normal volume for the stock at this time of day.
  • STRZA is trading at a new low 15.01% 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 STRZA:

Starz, through its subsidiaries, operates as a media and entertainment company. It operates through Starz Networks, Starz Distribution, and Starz Animation segments. The Starz Networks segment provides premium subscription video programming to U.S. STRZA has a PE ratio of 16. Currently there are 4 analysts that rate Starz a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Starz has been 702,100 shares per day over the past 30 days. Starz has a market cap of $4.0 billion and is part of the services sector and media industry. The stock has a beta of 1.12 and a short float of 9% with 15.10 days to cover. Shares are up 50.7% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Starz as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and weak operating cash flow.

Highlights from the ratings report include:
  • STRZA's revenue growth has slightly outpaced the industry average of 6.8%. Since the same quarter one year prior, revenues slightly increased by 7.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 41.07% and other important driving factors, this stock has surged by 49.37% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • Net operating cash flow has significantly decreased to -$5.80 million or 114.04% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Although STRZA's debt-to-equity ratio of 8.96 is very high, it is currently less than that of the industry average. Along with the unfavorable debt-to-equity ratio, STRZA maintains a poor quick ratio of 0.74, which illustrates the inability to avoid short-term cash problems.

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