Weak On High Volume: IHS (IHS)

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

  • IHS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $75.2 million.
  • IHS has traded 78,065 shares today.
  • IHS is trading at 3.97 times the normal volume for the stock at this time of day.
  • IHS is trading at a new low 4.06% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in IHS with the Ticky from Trade-Ideas. See the FREE profile for IHS NOW at Trade-Ideas

More details on IHS:

IHS Inc. provides information, insights, and analytics to multinational companies, governments, small companies, and technical professionals in various industries worldwide. The company operates through three segments: Resources, Transportation, and Consolidated Markets & Solutions (CMS). IHS has a PE ratio of 4. Currently there are 4 analysts that rate IHS a buy, 1 analyst rates it a sell, and 8 rate it a hold.

The average volume for IHS has been 389,200 shares per day over the past 30 days. IHS has a market cap of $8.2 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.92 and a short float of 2% with 1.57 days to cover. Shares are up 5.5% year-to-date as of the close of trading on Tuesday.

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 IHS as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and generally higher debt management risk.

Highlights from the ratings report include:
  • IHS's revenue growth has slightly outpaced the industry average of 5.9%. Since the same quarter one year prior, revenues slightly increased by 6.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Professional Services industry average. The net income increased by 14.0% when compared to the same quarter one year prior, going from $39.52 million to $45.04 million.
  • IHS INC has improved earnings per share by 10.9% 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, IHS INC reported lower earnings of $2.74 versus $2.83 in the prior year. This year, the market expects an improvement in earnings ($6.15 versus $2.74).
  • 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. In comparison to the other companies in the Professional Services industry and the overall market, IHS INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • Net operating cash flow has decreased to $151.90 million or 19.21% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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.

More from Markets

Three Big Factors That Rocked the Stock Market Tuesday

Three Big Factors That Rocked the Stock Market Tuesday

Dow Tumbles Over 400 Points; S&P 500 and Nasdaq Also Finish Lower

Dow Tumbles Over 400 Points; S&P 500 and Nasdaq Also Finish Lower

Caterpillar Bulldozes Industrial Sector With Bad News on Earnings Call

Caterpillar Bulldozes Industrial Sector With Bad News on Earnings Call

Jim Cramer: If You're Afraid of the 10-Year Yield, Go to Cash

Jim Cramer: If You're Afraid of the 10-Year Yield, Go to Cash

Eli Lilly CEO Expresses Confidence in New Rheumatoid Arthritis Drug

Eli Lilly CEO Expresses Confidence in New Rheumatoid Arthritis Drug