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

  • PLT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.7 million.
  • PLT has traded 51,050 shares today.
  • PLT is trading at 5.73 times the normal volume for the stock at this time of day.
  • PLT is trading at a new high 4.06% 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 PLT:

Plantronics, Inc. designs, manufactures, and markets lightweight communications headsets, telephone headset systems, other communication endpoints, and accessories for the business and consumer markets under the Plantronics brand worldwide. The stock currently has a dividend yield of 1.3%. PLT has a PE ratio of 21. Currently there are 5 analysts that rate Plantronics a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Plantronics has been 177,800 shares per day over the past 30 days. Plantronics has a market cap of $1.5 billion and is part of the technology sector and telecommunications industry. The stock has a beta of 1.28 and a short float of 3.9% with 2.62 days to cover. Shares are down 31.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Plantronics as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • 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. Compared to other companies in the Communications Equipment industry and the overall market, PLANTRONICS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • PLANTRONICS INC's earnings per share declined by 20.0% 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, PLANTRONICS INC increased its bottom line by earning $2.65 versus $2.60 in the prior year. This year, the market expects an improvement in earnings ($2.83 versus $2.65).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 4.8%. Since the same quarter one year prior, revenues slightly dropped by 0.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The gross profit margin for PLANTRONICS INC is rather high; currently it is at 53.86%. Regardless of PLT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PLT's net profit margin of 8.32% is significantly lower than the industry average.
  • PLT is off 9.24% from its price level of one year ago, reflecting a combination of (a) the general market trend and (b) the company's own weaknesses, including its lower earnings per share compared to the year-earlier quarter. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.

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