Big Lots (BIG) Is Today's Strong On High Volume 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
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Big Lots as such a stock due to the following factors:
- BIG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $56.5 million.
- BIG has traded 138,411 shares today.
- BIG is trading at 3.57 times the normal volume for the stock at this time of day.
- BIG is trading at a new high 3.01% 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 BIG:
Big Lots, Inc., through its subsidiaries, operates as a broadline closeout retailer in the United States. The stock currently has a dividend yield of 1.4%. BIG has a PE ratio of 24.8. Currently there are 10 analysts that rate Big Lots a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Big Lots has been 1.1 million shares per day over the past 30 days. Big Lots has a market cap of $2.6 billion and is part of the services sector and retail industry. The stock has a beta of 1.27 and a short float of 16.7% with 7.12 days to cover. Shares are up 21.2% year-to-date as of the close of trading on Friday.
Analysis:
rates Big Lots as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and feeble growth in the company's earnings per share.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Multiline Retail industry. The net income increased by 63.8% when compared to the same quarter one year prior, rising from -$9.52 million to -$3.44 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 3.4%. Since the same quarter one year prior, revenues slightly increased by 0.2%. 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.
- 38.93% is the gross profit margin for BIG LOTS INC which we consider to be strong. Regardless of BIG's high profit margin, it has managed to decrease from the same period last year.
- BIG LOTS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, BIG LOTS INC reported lower earnings of $2.38 versus $2.98 in the prior year. This year, the market expects an improvement in earnings ($2.47 versus $2.38).
- 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. Compared to other companies in the Multiline Retail industry and the overall market on the basis of return on equity, BIG LOTS INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- You can view the full Big Lots Ratings Report.
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