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

  • EPZM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.2 million.
  • EPZM has traded 54,148 shares today.
  • EPZM is trading at 2.83 times the normal volume for the stock at this time of day.
  • EPZM is trading at a new high 9.04% 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 EPZM:

Epizyme, Inc., a clinical stage biopharmaceutical company, discovers and develops epigenetic therapies for cancer patients. The company's proprietary product platform creates small molecule inhibitors of enzymes known as histone methyltransferases (HMTs). Currently there are 6 analysts that rate Epizyme a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Epizyme has been 662,600 shares per day over the past 30 days. Epizyme has a market cap of $647.6 million and is part of the health care sector and drugs industry. The stock has a beta of 0.68 and a short float of 44.1% with 13.34 days to cover. Shares are down 28.1% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Epizyme as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Biotechnology industry. The net income has significantly decreased by 47.8% when compared to the same quarter one year ago, falling from -$15.04 million to -$22.23 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Biotechnology industry and the overall market, EPIZYME INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has declined marginally to -$21.61 million or 3.07% 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.
  • Looking at the price performance of EPZM's shares over the past 12 months, there is not much good news to report: the stock is down 46.95%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • EPIZYME INC's earnings per share declined by 20.4% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, EPIZYME INC reported poor results of -$3.47 versus -$1.64 in the prior year. This year, the market expects an improvement in earnings (-$2.57 versus -$3.47).

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