Strong On High Volume: Coty (COTY)

Trade-Ideas LLC identified Coty (COTY) as a strong on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Coty

(

COTY

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

  • COTY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $52.9 million.
  • COTY has traded 124,112 shares today.
  • COTY is trading at 2.22 times the normal volume for the stock at this time of day.
  • COTY is trading at a new high 3.02% 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 COTY:

Coty Inc., together with its subsidiaries, is engaged in the manufacture, marketing, and distribution of women's and men's fragrances, color cosmetics, and skin and body care related products worldwide. The stock currently has a dividend yield of 0.9%. COTY has a PE ratio of 21. Currently there are 3 analysts that rate Coty a buy, 1 analyst rates it a sell, and 9 rate it a hold.

The average volume for Coty has been 1.7 million shares per day over the past 30 days. Coty 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 0.73 and a short float of 14.7% with 5.46 days to cover. Shares are up 29.8% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Coty as a

buy

. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, notable return on equity, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • COTY INC reported significant earnings per share improvement 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, COTY INC turned its bottom line around by earning $0.64 versus -$0.26 in the prior year. This year, the market expects an improvement in earnings ($1.16 versus $0.64).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Personal Products industry. The net income increased by 1085.8% when compared to the same quarter one year prior, rising from $10.60 million to $125.70 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Personal Products industry and the overall market, COTY INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly increased by 345.41% to $116.70 million when compared to the same quarter last year. In addition, COTY INC has also vastly surpassed the industry average cash flow growth rate of -87.12%.
  • The gross profit margin for COTY INC is rather high; currently it is at 63.78%. 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 11.30% trails the industry average.

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