Trade-Ideas LLC identified Vasco Data Security International ( VDSI) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Vasco Data Security International as such a stock due to the following factors:

  • VDSI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.9 million.
  • VDSI has traded 124,705 shares today.
  • VDSI is trading at 2.69 times the normal volume for the stock at this time of day.
  • VDSI is trading at a new high 5.11% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in VDSI with the Ticky from Trade-Ideas. See the FREE profile for VDSI NOW at Trade-Ideas

More details on VDSI:

VASCO Data Security International, Inc., together with its subsidiaries, designs, develops, markets, and supports hardware and software security systems that manage and secure access to information assets worldwide. VDSI has a PE ratio of 14. Currently there are 2 analysts that rate Vasco Data Security International a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Vasco Data Security International has been 1.1 million shares per day over the past 30 days. Vasco Data Security International has a market cap of $692.4 million and is part of the technology sector and computer software & services industry. The stock has a beta of 1.37 and a short float of 45.9% with 19.40 days to cover. Shares are down 32.7% year-to-date as of the close of trading on Tuesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Vasco Data Security International as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and impressive record of earnings per share growth. 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 9.9%. Since the same quarter one year prior, revenues rose by 37.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • VDSI has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 5.04, which clearly demonstrates the ability to cover short-term cash needs.
  • 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. In comparison to the other companies in the Software industry and the overall market, VASCO DATA SEC INTL INC's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • VASCO DATA SEC INTL 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, VASCO DATA SEC INTL INC increased its bottom line by earning $0.82 versus $0.28 in the prior year. This year, the market expects an improvement in earnings ($1.05 versus $0.82).

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.