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

  • EBIX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.6 million.
  • EBIX has traded 56,361 shares today.
  • EBIX is trading at 5.96 times the normal volume for the stock at this time of day.
  • EBIX is trading at a new high 3.02% 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 EBIX:

Ebix, Inc. provides software and e-commerce solutions to the insurance industry. The stock currently has a dividend yield of 1%. EBIX has a PE ratio of 15. Currently there is 1 analyst that rates Ebix a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Ebix has been 350,900 shares per day over the past 30 days. Ebix has a market cap of $1.0 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 2.09 and a short float of 41.7% with 28.06 days to cover. Shares are up 84.9% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Ebix as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. 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 17.3%. Since the same quarter one year prior, revenues rose by 25.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 54.28% and other important driving factors, this stock has surged by 106.66% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, EBIX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • EBIX 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 year. We feel that this trend should continue. During the past fiscal year, EBIX INC increased its bottom line by earning $1.67 versus $1.54 in the prior year. This year, the market expects an improvement in earnings ($2.10 versus $1.67).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 40.2% when compared to the same quarter one year prior, rising from $13.58 million to $19.04 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Software industry and the overall market, EBIX INC's return on equity exceeds that of both the industry average and the S&P 500.

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