G-III Apparel Group (GIII) Is Weak On High Volume Today

Trade-Ideas LLC identified G-III Apparel Group (GIII) as a weak on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

G-III Apparel Group

(

GIII

) 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 $18.1 million.
  • GIII has traded 407,040 shares today.
  • GIII is trading at 11.36 times the normal volume for the stock at this time of day.
  • GIII is trading at a new low 7.04% 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 men's and women's apparel. It operates through two segments: Wholesale Operations and Retail Operations. GIII has a PE ratio of 21. Currently there are 7 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 537,100 shares per day over the past 30 days. G-III Apparel Group has a market cap of $2.3 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.21 and a short float of 12% with 12.00 days to cover. Shares are up 13.3% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates G-III Apparel Group as a

buy

. 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, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 7.1%. Since the same quarter one year prior, revenues slightly increased by 5.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • GIII has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, GIII has a quick ratio of 2.04, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has significantly increased by 105.08% to $1.83 million when compared to the same quarter last year. In addition, G-III APPAREL GROUP LTD has also vastly surpassed the industry average cash flow growth rate of -100.84%.
  • 36.22% is the gross profit margin for G-III APPAREL GROUP LTD which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 0.60% trails the industry average.

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