Strong On High Relative Volume: Sykes (SYKE)

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

  • SYKE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.7 million.
  • SYKE has traded 92,300 shares today.
  • SYKE is trading at 4.15 times the normal volume for the stock at this time of day.
  • SYKE is trading at a new high 5.05% 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 SYKE:

Sykes Enterprises, Incorporated, together with its subsidiaries, provides outsourced customer contact management solutions and services in the business process outsourcing (BPO) arena. SYKE has a PE ratio of 17. Currently there is 1 analyst that rates Sykes a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Sykes has been 270,500 shares per day over the past 30 days. Sykes has a market cap of $1.2 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.90 and a short float of 1.8% with 2.87 days to cover. Shares are down 9.9% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Sykes as a buy. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins, solid stock price performance and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • 36.46% is the gross profit margin for SYKES ENTERPRISES INC which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, SYKE's net profit margin of 5.94% significantly trails the industry average.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. 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.
  • SYKES ENTERPRISES INC's earnings per share declined by 9.4% 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, SYKES ENTERPRISES INC increased its bottom line by earning $1.64 versus $1.35 in the prior year. This year, the market expects an improvement in earnings ($1.79 versus $1.64).
  • Despite the weak revenue results, SYKE has outperformed against the industry average of 18.3%. Since the same quarter one year prior, revenues slightly dropped by 3.6%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

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