Photronics (PLAB) Weak On High Volume

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

  • PLAB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.0 million.
  • PLAB has traded 504,384 shares today.
  • PLAB is trading at 13.46 times the normal volume for the stock at this time of day.
  • PLAB is trading at a new low 12.01% 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 PLAB:

Photronics, Inc., together with its subsidiaries, manufactures and sells photomasks in the United States, Taiwan, Korea, Europe, and internationally. PLAB has a PE ratio of 18. Currently there are 4 analysts that rate Photronics a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Photronics has been 946,100 shares per day over the past 30 days. Photronics has a market cap of $742.8 million and is part of the technology sector and electronics industry. The stock has a beta of 0.44 and a short float of 14.3% with 8.89 days to cover. Shares are down 10.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Photronics 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, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 3.4%. Since the same quarter one year prior, revenues rose by 14.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • PLAB's debt-to-equity ratio is very low at 0.21 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, PLAB has a quick ratio of 1.64, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Powered by its strong earnings growth of 257.14% and other important driving factors, this stock has surged by 41.23% 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, PLAB should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • PHOTRONICS 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 two years. We feel that this trend should continue. During the past fiscal year, PHOTRONICS INC increased its bottom line by earning $0.62 versus $0.39 in the prior year. This year, the market expects an improvement in earnings ($0.85 versus $0.62).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 335.4% when compared to the same quarter one year prior, rising from $4.28 million to $18.62 million.

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