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

  • NSR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.4 million.
  • NSR has traded 113,530 shares today.
  • NSR is trading at 6.39 times the normal volume for the stock at this time of day.
  • NSR is trading at a new high 7.03% 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 NSR:

NeuStar, Inc. provides real-time information services and analytics worldwide. The company serves marketing and security functions in the communications, financial services, media and advertising, retail and e-commerce, Internet, and technology industries. NSR has a PE ratio of 12. Currently there is 1 analyst that rates NeuStar a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for NeuStar has been 632,600 shares per day over the past 30 days. NeuStar has a market cap of $1.6 billion and is part of the technology sector and telecommunications industry. The stock has a beta of 1.99 and a short float of 50.4% with 46.45 days to cover. Shares are up 4.3% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates NeuStar as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, increase in net income and attractive valuation levels. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 21.5%. Since the same quarter one year prior, revenues slightly increased by 9.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • NEUSTAR INC 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, NEUSTAR INC increased its bottom line by earning $2.77 versus $2.47 in the prior year. This year, the market expects an improvement in earnings ($4.39 versus $2.77).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the IT Services industry. The net income increased by 45.9% when compared to the same quarter one year prior, rising from $31.68 million to $46.21 million.

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