Trade-Ideas: Wolverine World Wide (WWW) Is Today's New Lifetime High Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified Wolverine World Wide (WWW) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Wolverine World Wide as such a stock due to the following factors:
- WWW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $36.2 million.
- WWW has traded 987,936 shares today.
- WWW is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in WWW with the Ticky from Trade-Ideas. See the FREE profile for WWW NOW at Trade-IdeasMore details on WWW: Wolverine World Wide, Inc. designs, manufactures, sources, and markets branded footwear, apparel, and accessories. The stock currently has a dividend yield of 0.9%. WWW has a PE ratio of 36.8. Currently there are 2 analysts that rate Wolverine World Wide a buy, 1 analyst rates it a sell, and 6 rate it a hold.The average volume for Wolverine World Wide has been 408,800 shares per day over the past 30 days. Wolverine World Wide has a market cap of $2.8 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.76 and a short float of 7.5% with 5.45 days to cover. Shares are up 37.5% year to date as of the close of trading on Friday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates Wolverine World Wide as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.Highlights from the ratings report include:
- WWW's very impressive revenue growth greatly exceeded the industry average of 6.5%. Since the same quarter one year prior, revenues leaped by 88.0%. 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.
- Net operating cash flow has significantly increased by 121.33% to $176.80 million when compared to the same quarter last year. In addition, WOLVERINE WORLD WIDE has also vastly surpassed the industry average cash flow growth rate of -28.46%.
- 42.94% is the gross profit margin for WOLVERINE WORLD WIDE which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 3.04% trails the industry average.
- Compared to its closing price of one year ago, WWW's share price has jumped by 35.41%, 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.
- WOLVERINE WORLD WIDE's earnings per share declined by 14.3% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, WOLVERINE WORLD WIDE reported lower earnings of $1.64 versus $2.49 in the prior year. This year, the market expects an improvement in earnings ($2.80 versus $1.64).
- You can view the full Wolverine World Wide Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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