Coach (COH) Is Strong On High Volume Today
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Coach as such a stock due to the following factors:
- COH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $144.6 million.
- COH has traded 856,457 shares today.
- COH is trading at 4.22 times the normal volume for the stock at this time of day.
- COH is trading at a new high 3.00% 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 COH:
Coach, Inc. provides luxury accessories and lifestyle collections in the United States. The stock currently has a dividend yield of 3.2%. COH has a PE ratio of 3. Currently there are 11 analysts that rate Coach a buy, 1 analyst rates it a sell, and 9 rate it a hold.
The average volume for Coach has been 3.8 million shares per day over the past 30 days. Coach has a market cap of $11.7 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.41 and a short float of 5.5% with 4.64 days to cover. Shares are up 29.2% year-to-date as of the close of trading on Friday.
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Analysis:
rates Coach as a
. 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 and increase in net income. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.
Highlights from the ratings report include:
- COH's revenue growth has slightly outpaced the industry average of 6.9%. Since the same quarter one year prior, revenues rose by 11.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The current debt-to-equity ratio, 0.34, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, COH has a quick ratio of 2.11, which demonstrates the ability of the company to cover short-term liquidity needs.
- COACH INC has improved earnings per share by 25.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, COACH INC reported lower earnings of $1.45 versus $2.78 in the prior year. This year, the market expects an improvement in earnings ($1.92 versus $1.45).
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 26.17% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
- 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 Textiles, Apparel & Luxury Goods industry and the overall market on the basis of return on equity, COACH INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- You can view the full Coach Ratings Report.
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