On Assignment (ASGN) Is Today's Strong On High Volume Stock

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

  • ASGN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.7 million.
  • ASGN has traded 126,385 shares today.
  • ASGN is trading at 14.11 times the normal volume for the stock at this time of day.
  • ASGN is trading at a new high 12.04% 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 ASGN:

On Assignment, Inc. provides professionals for contract, contract-to-hire, and direct hire assignments primarily in the United States, Europe, and Canada. The company operates through two segments, Apex and Oxford. ASGN has a PE ratio of 27. Currently there are 6 analysts that rate On Assignment a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for On Assignment has been 336,200 shares per day over the past 30 days. On Assignment has a market cap of $2.0 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.92 and a short float of 2.1% with 2.71 days to cover. Shares are down 23.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates On Assignment as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 1.7%. Since the same quarter one year prior, revenues rose by 30.9%. 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.
  • The debt-to-equity ratio is somewhat low, currently at 0.96, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, ASGN has a quick ratio of 2.44, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has slightly increased to $30.20 million or 7.59% when compared to the same quarter last year. Despite an increase in cash flow, ON ASSIGNMENT INC's average is still marginally south of the industry average growth rate of 13.43%.
  • ON ASSIGNMENT INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, ON ASSIGNMENT INC reported lower earnings of $1.35 versus $1.36 in the prior year. This year, the market expects an improvement in earnings ($3.08 versus $1.35).

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