Lumber Liquidators Holdings (LL) Is Strong On High Volume Today

Trade-Ideas LLC identified Lumber Liquidators Holdings (LL) as a strong on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Lumber Liquidators Holdings

(

LL

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Lumber Liquidators Holdings as such a stock due to the following factors:

  • LL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.3 million.
  • LL has traded 1.1 million shares today.
  • LL is trading at 11.52 times the normal volume for the stock at this time of day.
  • LL is trading at a new high 11.04% 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 LL:

Lumber Liquidators Holdings, Inc., together with its subsidiaries, operates as a multi-channel specialty retailer of hardwood flooring, and hardwood flooring enhancements and accessories. Currently there are 2 analysts that rate Lumber Liquidators Holdings a buy, no analysts rate it a sell, and 10 rate it a hold.

The average volume for Lumber Liquidators Holdings has been 2.1 million shares per day over the past 30 days. Lumber Liquidators has a market cap of $379.7 million and is part of the services sector and retail industry. The stock has a beta of 2.34 and a short float of 55.1% with 6.93 days to cover. Shares are down 78.6% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Lumber Liquidators Holdings as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:

  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 71.83%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 225.00% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, LL is still more expensive than most of the other companies in its industry.
  • LUMBER LIQUIDATORS HLDGS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, LUMBER LIQUIDATORS HLDGS INC reported lower earnings of $2.31 versus $2.77 in the prior year. For the next year, the market is expecting a contraction of 152.6% in earnings (-$1.22 versus $2.31).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Specialty Retail industry. The net income has significantly decreased by 222.5% when compared to the same quarter one year ago, falling from $16.61 million to -$20.35 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Specialty Retail industry and the overall market, LUMBER LIQUIDATORS HLDGS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for LUMBER LIQUIDATORS HLDGS INC is currently lower than what is desirable, coming in at 25.12%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -8.20% is significantly below that of the industry average.

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