Strong On High Volume: Hackett Group (HCKT)

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

  • HCKT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.8 million.
  • HCKT has traded 114,857 shares today.
  • HCKT is trading at 11.50 times the normal volume for the stock at this time of day.
  • HCKT is trading at a new high 17.33% 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 HCKT with the Ticky from Trade-Ideas. See the FREE profile for HCKT NOW at Trade-Ideas

More details on HCKT:

The Hackett Group, Inc. operates as a strategic advisory and technology consulting firm primarily in the United States and Western Europe. The stock currently has a dividend yield of 0.6%. HCKT has a PE ratio of 36. Currently there are 3 analysts that rate Hackett Group a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Hackett Group has been 164,600 shares per day over the past 30 days. Hackett Group has a market cap of $469.6 million and is part of the services sector and diversified services industry. The stock has a beta of 0.39 and a short float of 3% with 4.30 days to cover. Shares are up 81.2% 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 Hackett Group as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 27.1%. Since the same quarter one year prior, revenues slightly increased by 8.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • HCKT's debt-to-equity ratio is very low at 0.20 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.39, which illustrates the ability to avoid short-term cash problems.
  • HACKETT GROUP INC has improved earnings per share by 33.3% 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, HACKETT GROUP INC increased its bottom line by earning $0.38 versus $0.27 in the prior year. This year, the market expects an improvement in earnings ($0.69 versus $0.38).
  • Net operating cash flow has significantly increased by 1388.52% to $9.08 million when compared to the same quarter last year. In addition, HACKETT GROUP INC has also vastly surpassed the industry average cash flow growth rate of -12.89%.
  • Powered by its strong earnings growth of 33.33% and other important driving factors, this stock has surged by 96.26% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.

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.

More from Markets

Let the Najarian Brothers Help You Generate Income With Options

Let the Najarian Brothers Help You Generate Income With Options

Oil Stocks Jump as Global Crude Oil Rally Gains Steam

Oil Stocks Jump as Global Crude Oil Rally Gains Steam

P&G Tops Forecasts in Early Q3 Earnings Release Following Merck KGaA Deal

P&G Tops Forecasts in Early Q3 Earnings Release Following Merck KGaA Deal

Amazon Prime Tops 100 Million Members and 4 Other Stories You Must Know Thursday

Amazon Prime Tops 100 Million Members and 4 Other Stories You Must Know Thursday

Amazon, Procter & Gamble, Southwest and Netflix - 5 Things You Must Know

Amazon, Procter & Gamble, Southwest and Netflix - 5 Things You Must Know