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

  • EEFT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.4 million.
  • EEFT has traded 69,591 shares today.
  • EEFT is trading at 6.84 times the normal volume for the stock at this time of day.
  • EEFT is trading at a new high 4.00% 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 EEFT:

Euronet Worldwide, Inc. provides payment and transaction processing and distribution solutions to financial institutions, retailers, service providers, and individual consumers worldwide. EEFT has a PE ratio of 41. Currently there are 6 analysts that rate Euronet Worldwide a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Euronet Worldwide has been 458,600 shares per day over the past 30 days. Euronet Worldwide has a market cap of $4.0 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.49 and a short float of 4.7% with 7.03 days to cover. Shares are up 3.5% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Euronet Worldwide 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, increase in net income, solid stock price performance and growth in earnings per share. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 9.4%. Since the same quarter one year prior, revenues slightly increased by 1.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.51, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.02, which illustrates the ability to avoid short-term cash problems.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the IT Services industry average. The net income increased by 11.3% when compared to the same quarter one year prior, going from $30.09 million to $33.49 million.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 28.65% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • EURONET WORLDWIDE 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, EURONET WORLDWIDE INC reported lower earnings of $1.81 versus $1.87 in the prior year. This year, the market expects an improvement in earnings ($3.79 versus $1.81).

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