Haemonetics (HAE) Flagged As Strong On High Volume

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

  • HAE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.4 million.
  • HAE has traded 95,722 shares today.
  • HAE is trading at 9.31 times the normal volume for the stock at this time of day.
  • HAE is trading at a new high 8.09% 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 HAE with the Ticky from Trade-Ideas. See the FREE profile for HAE NOW at Trade-Ideas

More details on HAE:

Haemonetics Corporation designs, manufactures, and markets blood management solutions. The company operates through North America Plasma, North America Blood Center and Hospital, Europe, Asia Pacific, and Japan segments. HAE has a PE ratio of 62. Currently there are 3 analysts that rate Haemonetics a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Haemonetics has been 266,300 shares per day over the past 30 days. Haemonetics has a market cap of $1.5 billion and is part of the health care sector and health services industry. The stock has a beta of 0.91 and a short float of 3.2% with 4.41 days to cover. Shares are down 1.9% year-to-date as of the close of trading on Friday.

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 Haemonetics as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income increased by 71.8% when compared to the same quarter one year prior, rising from $7.49 million to $12.86 million.
  • The current debt-to-equity ratio, 0.56, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.31, which illustrates the ability to avoid short-term cash problems.
  • HAEMONETICS CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. 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, HAEMONETICS CORP reported lower earnings of $0.32 versus $0.67 in the prior year. This year, the market expects an improvement in earnings ($1.71 versus $0.32).
  • 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. When compared to other companies in the Health Care Equipment & Supplies industry and the overall market, HAEMONETICS CORP's return on equity is below that of both the industry average and the S&P 500.
  • HAE has underperformed the S&P 500 Index, declining 17.63% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.

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.