Chuy's Holdings (CHUY) Strong On High Relative Volume Today
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 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 $7.2 million.
- CHUY has traded 92,138 shares today.
- CHUY is trading at 8.34 times the normal volume for the stock at this time of day.
- CHUY is trading at a new high 8.08% 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 CHUY:
Chuy's Holdings, Inc., through its subsidiary, Chuy's Opco, Inc., owns and operates restaurants under the Chuy's name in Texas and 13 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 32.6. Currently there are 2 analysts that rate Chuy's Holdings a buy, no analysts rate it a sell, and 7 rate it a hold.
The average volume for Chuy's Holdings has been 286,600 shares per day over the past 30 days. Chuy's has a market cap of $369.4 million and is part of the services sector and leisure industry. The stock has a beta of 0.47 and a short float of 18.6% with 8.72 days to cover. Shares are up 15.8% year-to-date as of the close of trading on Monday.
Analysis:
rates Chuy's Holdings as a
. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, disappointing return on equity, poor profit margins and weak operating cash flow.
Highlights from the ratings report include:
- CHUY's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 44.90%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
- 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. In comparison to the other companies in the Hotels, Restaurants & Leisure industry and the overall market, CHUY'S HOLDINGS INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- The gross profit margin for CHUY'S HOLDINGS INC is rather low; currently it is at 17.92%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 4.84% trails that of the industry average.
- Net operating cash flow has declined marginally to $6.80 million or 1.37% 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.
- CHUY's debt-to-equity ratio is very low at 0.08 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.39 is very weak and demonstrates a lack of ability to pay short-term obligations.
- You can view the full Chuy's Holdings Ratings Report.
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