Fred's (FRED) 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 Fred's as such a stock due to the following factors:
- FRED has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.1 million.
- FRED has traded 51,991 shares today.
- FRED is trading at 6.50 times the normal volume for the stock at this time of day.
- FRED is trading at a new high 4.01% 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.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in FRED with the Ticky from Trade-Ideas. See the FREE profile for FRED NOW at Trade-Ideas
More details on FRED:
Fred's, Inc., together with its subsidiaries, sells general merchandise through its retail discount stores and full service pharmacies. The stock currently has a dividend yield of 1.6%. Currently there are no analysts that rate Fred's a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for Fred's has been 203,100 shares per day over the past 30 days. Fred's has a market cap of $545.6 million and is part of the services sector and retail industry. The stock has a beta of 1.77 and a short float of 13.2% with 15.39 days to cover. Shares are down 11.1% year-to-date as of the close of trading on Tuesday.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
Analysis:
rates Fred's as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, a generally disappointing performance in the stock itself and poor profit margins.
Highlights from the ratings report include:
- FRED's revenue growth has slightly outpaced the industry average of 6.0%. Since the same quarter one year prior, revenues rose by 11.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 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 70.3% when compared to the same quarter one year prior, rising from -$16.43 million to -$4.88 million.
- FRED's debt-to-equity ratio is very low at 0.17 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 0.46 is very weak and demonstrates a lack of ability to pay short-term obligations.
- FRED has underperformed the S&P 500 Index, declining 8.93% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Multiline Retail industry and the overall market, FREDS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Fred's Ratings Report.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.