Strong On High Relative Volume: Dillards (DDS)
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Dillards as such a stock due to the following factors:
- DDS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $44.4 million.
- DDS has traded 53,010 shares today.
- DDS is trading at 2.79 times the normal volume for the stock at this time of day.
- DDS is trading at a new high 3.00% 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 DDS:
Dillard's, Inc. operates as a fashion apparel, cosmetics, and home furnishing retailer in the United States. The company's stores offer a selection of merchandise, including fashion apparel for women, men, and children; accessories; cosmetics; home furnishings; and other consumer goods. The stock currently has a dividend yield of 0.3%. DDS has a PE ratio of 11. Currently there are no analysts that rate Dillards a buy, 2 analysts rate it a sell, and 2 rate it a hold.
The average volume for Dillards has been 474,600 shares per day over the past 30 days. Dillards has a market cap of $3.1 billion and is part of the services sector and retail industry. The stock has a beta of 1.36 and a short float of 19.1% with 8.38 days to cover. Shares are down 34.6% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Dillards as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and weak operating cash flow.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 7.4%. Since the same quarter one year prior, revenues slightly increased by 2.3%. 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.
- The current debt-to-equity ratio, 0.43, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.27 is very weak and demonstrates a lack of ability to pay short-term obligations.
- Net operating cash flow has declined marginally to -$29.30 million or 4.55% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Multiline Retail industry average, but is greater than that of the S&P 500. The net income has decreased by 13.1% when compared to the same quarter one year ago, dropping from $34.45 million to $29.95 million.
- You can view the full Dillards Ratings Report.
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