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

  • XRAY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $84.1 million.
  • XRAY has traded 287,839 shares today.
  • XRAY is trading at 8.46 times the normal volume for the stock at this time of day.
  • XRAY is trading at a new low 4.03% 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 XRAY:

DENTSPLY International Inc. designs, develops, manufactures, and markets various consumable dental products for the professional dental market in the United States and internationally. The stock currently has a dividend yield of 0.5%. XRAY has a PE ratio of 29. Currently there are 7 analysts that rate DENTSPLY International a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for DENTSPLY International has been 1.1 million shares per day over the past 30 days. DENTSPLY International has a market cap of $8.0 billion and is part of the health care sector and health services industry. The stock has a beta of 1.38 and a short float of 7.3% with 5.99 days to cover. Shares are down 5.1% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates DENTSPLY International as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, reasonable valuation levels and expanding profit margins. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • DENTSPLY INTERNATL INC has improved earnings per share by 13.5% 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, DENTSPLY INTERNATL INC increased its bottom line by earning $2.23 versus $2.15 in the prior year. This year, the market expects an improvement in earnings ($2.62 versus $2.23).
  • 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 12.3% when compared to the same quarter one year prior, going from $75.27 million to $84.50 million.
  • The gross profit margin for DENTSPLY INTERNATL INC is rather high; currently it is at 62.15%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 13.02% is above that of the industry average.

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