G-III Apparel Group (GIII) Is Weak On High 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.
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified G-III Apparel Group as such a stock due to the following factors:
- GIII has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.0 million.
- GIII has traded 143,736 shares today.
- GIII is trading at 28.40 times the normal volume for the stock at this time of day.
- GIII is trading at a new low 3.12% 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 GIII:
G-III Apparel Group, Ltd. designs, manufactures, and markets women's and men's apparel. The company's products include outerwear, dresses, sportswear, swimwear, women's suits, and women's performance wear. GIII has a PE ratio of 24.0. Currently there are 6 analysts that rate G-III Apparel Group a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for G-III Apparel Group has been 155,000 shares per day over the past 30 days. G-III Apparel Group has a market cap of $2.5 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.43 and a short float of 9.1% with 8.21 days to cover. Shares are up 11.7% year-to-date as of the close of trading on Monday.
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Analysis:
rates G-III Apparel Group as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- GIII's revenue growth has slightly outpaced the industry average of 13.6%. Since the same quarter one year prior, revenues rose by 21.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Although GIII's debt-to-equity ratio of 0.21 is very low, it is currently higher than that of the industry average. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.16, which illustrates the ability to avoid short-term cash problems.
- 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 48.16% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, GIII should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- G-III APPAREL GROUP LTD has improved earnings per share by 23.9% 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, G-III APPAREL GROUP LTD increased its bottom line by earning $3.69 versus $2.80 in the prior year. This year, the market expects an improvement in earnings ($4.37 versus $3.69).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry. The net income increased by 35.3% when compared to the same quarter one year prior, rising from $59.60 million to $80.62 million.
- You can view the full G-III Apparel Group Ratings Report.
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