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

  • FNSR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.3 million.
  • FNSR has traded 402,777 shares today.
  • FNSR is trading at 5.54 times the normal volume for the stock at this time of day.
  • FNSR is trading at a new high 4.05% 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 FNSR:

Finisar Corporation provides optical subsystems and components for data communication and telecommunication applications in the United States, Malaysia, China, and internationally. FNSR has a PE ratio of 6. Currently there are 4 analysts that rate Finisar a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Finisar has been 1.3 million shares per day over the past 30 days. Finisar has a market cap of $1.8 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.36 and a short float of 10.7% with 7.60 days to cover. Shares are up 17.1% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Finisar as a hold. 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 and increase in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:
  • FNSR's revenue growth has slightly outpaced the industry average of 0.4%. Since the same quarter one year prior, revenues slightly increased by 0.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • FNSR's debt-to-equity ratio is very low at 0.20 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 3.68, which clearly demonstrates the ability to cover short-term cash needs.
  • FINISAR CORP reported significant earnings per share improvement 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, FINISAR CORP reported lower earnings of $0.12 versus $1.09 in the prior year. This year, the market expects an improvement in earnings ($0.98 versus $0.12).
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Communications Equipment industry and the overall market, FINISAR CORP's return on equity is below that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $31.67 million or 20.07% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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