Stonemor Partners (STON) Highlighted As Weak On High Volume

Trade-Ideas LLC identified Stonemor Partners (STON) as a weak on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Stonemor Partners

(

STON

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Stonemor Partners as such a stock due to the following factors:

  • STON has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.4 million.
  • STON has traded 92,589 shares today.
  • STON is trading at 11.11 times the normal volume for the stock at this time of day.
  • STON is trading at a new low 5.10% 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 STON:

StoneMor Partners L.P., together with its subsidiaries, owns and operates cemeteries in the United States. It operates through Cemetery Operations-Southeast, Cemetery Operations-Northeast, Cemetery Operations-West, and Funeral Homes segments. The stock currently has a dividend yield of 8.9%. Currently there are 4 analysts that rate Stonemor Partners a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Stonemor Partners has been 168,400 shares per day over the past 30 days. Stonemor has a market cap of $939.2 million and is part of the services sector and diversified services industry. The stock has a beta of 1.05 and a short float of 1.7% with 2.76 days to cover. Shares are up 10.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Stonemor Partners as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 1.3%. Since the same quarter one year prior, revenues rose by 13.0%. 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.
  • This stock has managed to rise its share value by 14.32% over the past twelve months. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • 48.31% is the gross profit margin for STONEMOR PARTNERS LP which we consider to be strong. Regardless of STON's high profit margin, it has managed to decrease from the same period last year.
  • 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 Diversified Consumer Services industry and the overall market, STONEMOR PARTNERS LP's return on equity significantly trails that of both the industry average and the S&P 500.
  • 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 Diversified Consumer Services industry. The net income has significantly decreased by 4008.5% when compared to the same quarter one year ago, falling from -$0.12 million to -$4.85 million.

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