Trade-Ideas LLC identified NeuStar ( NSR) as a weak 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 $11.5 million.
  • NSR has traded 115,916 shares today.
  • NSR is trading at 7.05 times the normal volume for the stock at this time of day.
  • NSR is trading at a new low 4.07% 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 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 554,300 shares per day over the past 30 days. NeuStar has a market cap of $1.5 billion and is part of the technology sector and telecommunications industry. The stock has a beta of 1.76 and a short float of 47% with 52.69 days to cover. Shares are down 1% 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 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 find that the company's return on equity has been disappointing.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 21.5%. Since the same quarter one year prior, revenues slightly increased by 8.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • Even though the current debt-to-equity ratio is 1.19, it is still below the industry average, suggesting that this level of debt is acceptable within the IT Services industry. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 2.80 is very high and demonstrates very strong liquidity.
  • The gross profit margin for NEUSTAR INC is currently very high, coming in at 73.69%. Regardless of NSR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 17.54% trails the industry average.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to other companies in the IT Services industry and the overall market on the basis of return on equity, NEUSTAR INC has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.

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