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

  • ASPS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.8 million.
  • ASPS has traded 60,606 shares today.
  • ASPS is trading at 3.01 times the normal volume for the stock at this time of day.
  • ASPS is trading at a new high 5.08% 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 ASPS:

Altisource Portfolio Solutions S.A. operates as a marketplace and transaction solutions provider for the real estate, mortgage, and consumer debt industries in the United States. ASPS has a PE ratio of 9. Currently there is 1 analyst that rates Altisource Portfolio Solutions a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Altisource Portfolio Solutions has been 473,100 shares per day over the past 30 days. Altisource has a market cap of $728.8 million and is part of the services sector and diversified services industry. The stock has a beta of 1.22 and a short float of 45.7% with 6.23 days to cover. Shares are down 3.3% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Altisource Portfolio Solutions as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Real Estate Management & Development industry and the overall market, ALTISOURCE PORTFOLIO SOLTNS's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • 40.04% is the gross profit margin for ALTISOURCE PORTFOLIO SOLTNS which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 17.12% is above that of the industry average.
  • ALTISOURCE PORTFOLIO SOLTNS reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ALTISOURCE PORTFOLIO SOLTNS increased its bottom line by earning $5.56 versus $5.19 in the prior year. This year, the market expects an improvement in earnings ($5.77 versus $5.56).
  • Net operating cash flow has declined marginally to $70.75 million or 5.94% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Real Estate Management & Development industry average. The net income has decreased by 15.1% when compared to the same quarter one year ago, dropping from $54.10 million to $45.95 million.

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