Trade-Ideas LLC identified Coherent ( COHR) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Coherent as such a stock due to the following factors:
- COHR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.1 million.
- COHR has traded 51,737 shares today.
- COHR is trading at 5.38 times the normal volume for the stock at this time of day.
- COHR is trading at a new low 3.01% 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. EXCLUSIVE OFFER: Get the inside scoop on opportunities in COHR with the Ticky from Trade-Ideas. See the FREE profile for COHR NOW at Trade-Ideas More details on COHR: Coherent, Inc. supplies photonics-based solutions for a range of commercial and scientific research applications worldwide. It operates through two segments: Specialty Lasers and Systems, and Commercial Lasers and Components. COHR has a PE ratio of 31. Currently there is 1 analyst that rates Coherent a buy, no analysts rate it a sell, and none rate it a hold. The average volume for Coherent has been 218,900 shares per day over the past 30 days. Coherent has a market cap of $2.4 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.33 and a short float of 2.1% with 2.68 days to cover. Shares are up 46.5% year-to-date as of the close of trading on Thursday. EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Coherent as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow. Highlights from the ratings report include:
- 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 39.96% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, COHR should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- COHERENT INC has improved earnings per share by 21.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, COHERENT INC increased its bottom line by earning $3.06 versus $2.36 in the prior year. This year, the market expects an improvement in earnings ($4.48 versus $3.06).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 16.4% when compared to the same quarter one year prior, going from $17.43 million to $20.29 million.
- COHR's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.89, which clearly demonstrates the ability to cover short-term cash needs.
- 48.18% is the gross profit margin for COHERENT INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 10.66% is above that of the industry average.
- You can view the full Coherent Ratings Report.
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