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

  • WNS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.2 million.
  • WNS has traded 200,795 shares today.
  • WNS is trading at 8.96 times the normal volume for the stock at this time of day.
  • WNS is trading at a new low 3.14% 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 WNS:

WNS (Holdings) Limited provides business process management services comprising data, voice, analytical, and business transformation services worldwide. WNS has a PE ratio of 28. Currently there are 7 analysts that rate WNS (Holdings a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for WNS (Holdings has been 150,800 shares per day over the past 30 days. WNS (Holdings has a market cap of $1.6 billion and is part of the services sector and diversified services industry. Shares are up 0.3% year-to-date as of the close of trading on Wednesday.

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TheStreet Quant Ratings rates WNS (Holdings as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance 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 revenue growth came in higher than the industry average of 17.8%. Since the same quarter one year prior, revenues slightly increased by 6.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • WNS has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 2.51, which clearly demonstrates the ability to cover short-term cash needs.
  • WNS (HOLDINGS) LTD -ADR' earnings per share from the most recent quarter came in slightly below the year earlier quarter. 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, WNS (HOLDINGS) LTD -ADR increased its bottom line by earning $1.11 versus $0.79 in the prior year. This year, the market expects an improvement in earnings ($1.89 versus $1.11).
  • Compared to its closing price of one year ago, WNS's share price has jumped by 34.67%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • 39.10% is the gross profit margin for WNS (HOLDINGS) LTD -ADR which we consider to be strong. Regardless of WNS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, WNS's net profit margin of 10.89% is significantly lower than the industry average.

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