Accuray (ARAY) Strong On High Relative Volume Today

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

  • ARAY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.5 million.
  • ARAY has traded 94,507 shares today.
  • ARAY is trading at 2.00 times the normal volume for the stock at this time of day.
  • ARAY is trading at a new high 4.13% 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 ARAY:

Accuray Incorporated designs, develops, and sells radiosurgery and radiation therapy systems for the treatment of tumors in the body. Currently there are 5 analysts that rate Accuray a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Accuray has been 845,000 shares per day over the past 30 days. Accuray has a market cap of $454.3 million and is part of the health care sector and health services industry. The stock has a beta of 1.42 and a short float of 14.9% with 17.12 days to cover. Shares are down 17.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Accuray as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • The debt-to-equity ratio is very high at 3.40 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, ARAY maintains a poor quick ratio of 0.82, which illustrates the inability to avoid short-term cash problems.
  • ARAY's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 38.93%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, ACCURAY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • 43.22% is the gross profit margin for ACCURAY INC which we consider to be strong. Regardless of ARAY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ARAY's net profit margin of -5.53% significantly underperformed when compared to the industry average.
  • ACCURAY INC has improved earnings per share by 38.5% 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, ACCURAY INC reported poor results of -$0.52 versus -$0.47 in the prior year. This year, the market expects an improvement in earnings (-$0.29 versus -$0.52).

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