Trade-Ideas: DSW (DSW) Is Today's Post-Market Leader 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 DSW (DSW) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified DSW as such a stock due to the following factors:
- DSW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $77.5 million.
- DSW is up 2.3% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in DSW with the Ticky from Trade-Ideas. See the FREE profile for DSW NOW at Trade-IdeasMore details on DSW: DSW Inc. operates as a branded footwear and accessories retailer in the United States. The company operates in two segments, DSW and Affiliated Business Group. The stock currently has a dividend yield of 2.8%. DSW has a PE ratio of 16.0. Currently there are 3 analysts that rate DSW a buy, no analysts rate it a sell, and 4 rate it a hold.The average volume for DSW has been 2.4 million shares per day over the past 30 days. DSW has a market cap of $2.3 billion and is part of the services sector and retail industry. The stock has a beta of 0.48 and a short float of 2.6% with 0.60 days to cover. Shares are down 36.1% 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 DSW 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, reasonable valuation levels, increase in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company shows low profit margins.Highlights from the ratings report include:
- DSW's revenue growth has slightly outpaced the industry average of 2.2%. Since the same quarter one year prior, revenues slightly increased by 0.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- DSW has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.26, which illustrates the ability to avoid short-term cash problems.
- The net income growth from the same quarter one year ago has exceeded that of the Specialty Retail industry average, but is less than that of the S&P 500. The net income increased by 11.9% when compared to the same quarter one year prior, going from $34.52 million to $38.64 million.
- DSW INC has improved earnings per share by 12.0% 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 year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, DSW INC increased its bottom line by earning $1.64 versus $1.60 in the prior year. For the next year, the market is expecting a contraction of 5.5% in earnings ($1.55 versus $1.64).
- You can view the full DSW 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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