Strong On High Volume: Cedar Fair (FUN)

Trade-Ideas LLC identified Cedar Fair (FUN) as a strong on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Cedar Fair

(

FUN

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

  • FUN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.2 million.
  • FUN has traded 58,295 shares today.
  • FUN is trading at 14.37 times the normal volume for the stock at this time of day.
  • FUN is trading at a new high 3.06% 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 FUN:

Cedar Fair, L.P. owns and operates amusement and water parks, and hotels in the United States and Canada. As of February 17, 2016, the company operated approximately 11 amusement parks, 3 outdoor water parks, 1 indoor water park, and 5 hotels. The stock currently has a dividend yield of 5.6%. FUN has a PE ratio of 22. Currently there are 6 analysts that rate Cedar Fair a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Cedar Fair has been 127,500 shares per day over the past 30 days. Cedar Fair has a market cap of $3.3 billion and is part of the services sector and leisure industry. The stock has a beta of 0.35 and a short float of 0.9% with 2.45 days to cover. Shares are up 5.3% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Cedar Fair as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 11.0%. Since the same quarter one year prior, revenues rose by 24.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • CEDAR FAIR -LP has improved earnings per share by 42.0% 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, CEDAR FAIR -LP increased its bottom line by earning $1.98 versus $1.86 in the prior year. This year, the market expects an improvement in earnings ($3.59 versus $1.98).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Hotels, Restaurants & Leisure industry average. The net income increased by 42.2% when compared to the same quarter one year prior, rising from -$83.83 million to -$48.49 million.
  • Net operating cash flow has decreased to -$67.84 million or 12.60% 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.

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