Denny's (DENN) 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 Denny's as such a stock due to the following factors:
- DENN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.2 million.
- DENN has traded 63,493 shares today.
- DENN is trading at 2.23 times the normal volume for the stock at this time of day.
- DENN 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 DENN:
Denny's Corporation, through its subsidiary, Denny's, Inc., owns and operates restaurants under the Denny's brand name in the United States and internationally. DENN has a PE ratio of 31.9. Currently there are 2 analysts that rate Denny's a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Denny's has been 909,600 shares per day over the past 30 days. Denny's has a market cap of $999.8 million and is part of the services sector and leisure industry. The stock has a beta of 0.31 and a short float of 2% with 1.78 days to cover. Shares are up 11.6% year-to-date as of the close of trading on Friday.
Analysis:
rates Denny's as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 7.7%. Since the same quarter one year prior, revenues rose by 12.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Powered by its strong earnings growth of 120.00% and other important driving factors, this stock has surged by 76.38% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, DENN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- DENNYS CORP reported significant earnings per share improvement 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, DENNYS CORP increased its bottom line by earning $0.37 versus $0.27 in the prior year. This year, the market expects an improvement in earnings ($0.42 versus $0.37).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 127.1% when compared to the same quarter one year prior, rising from $4.26 million to $9.68 million.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, DENNYS CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- You can view the full Denny's Ratings Report.
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