Chuy's Holdings (CHUY) Is Weak On High Volume Today

Trade-Ideas LLC identified Chuy's Holdings (CHUY) as a weak on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Chuy's Holdings

(

CHUY

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Chuy's Holdings as such a stock due to the following factors:

  • CHUY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.4 million.
  • CHUY has traded 53,554 shares today.
  • CHUY is trading at 8.57 times the normal volume for the stock at this time of day.
  • CHUY is trading at a new low 9.03% 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.

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More details on CHUY:

Chuy's Holdings, Inc., through its subsidiary, Chuy's Opco, Inc., owns and operates restaurants under the Chuy's name in Texas and 14 states in the southeastern and midwestern United States. The company's restaurants provide Mexican and Tex Mex inspired food. CHUY has a PE ratio of 44. Currently there are 4 analysts that rate Chuy's Holdings a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Chuy's Holdings has been 182,100 shares per day over the past 30 days. Chuy's has a market cap of $623.6 million and is part of the services sector and leisure industry. The stock has a beta of -0.53 and a short float of 19.6% with 20.98 days to cover. Shares are up 18.7% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Chuy's Holdings as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • CHUY's revenue growth has slightly outpaced the industry average of 10.3%. Since the same quarter one year prior, revenues rose by 16.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • CHUY'S HOLDINGS INC has improved earnings per share by 42.1% 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, CHUY'S HOLDINGS INC increased its bottom line by earning $0.76 versus $0.70 in the prior year. This year, the market expects an improvement in earnings ($1.08 versus $0.76).
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Hotels, Restaurants & Leisure industry average. The net income increased by 40.1% when compared to the same quarter one year prior, rising from $3.24 million to $4.53 million.
  • Powered by its strong earnings growth of 42.10% and other important driving factors, this stock has surged by 37.45% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • CHUY 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. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.45 is very weak and demonstrates a lack of ability to pay short-term obligations.

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