Strong On High Volume: Sothebys (BID)
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Sothebys as such a stock due to the following factors:
- BID has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $47.5 million.
- BID has traded 163,052 shares today.
- BID is trading at 3.49 times the normal volume for the stock at this time of day.
- BID is trading at a new high 3.03% 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.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in BID with the Ticky from Trade-Ideas. See the FREE profile for BID NOW at Trade-Ideas
More details on BID:
Sotheby's operates as an auctioneer of authenticated fine art, decorative art, and jewelry in the United States, the United Kingdom, China, France, Switzerland, and internationally. It operates through three segments: Agency, Principal, and Finance. The stock currently has a dividend yield of 1.3%. BID has a PE ratio of 18. Currently there are 3 analysts that rate Sothebys a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Sothebys has been 1.1 million shares per day over the past 30 days. Sothebys has a market cap of $2.1 billion and is part of the services sector and specialty retail industry. The stock has a beta of 1.49 and a short float of 17.3% with 5.97 days to cover. Shares are down 33.5% year-to-date as of the close of trading on Wednesday.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
Analysis:
rates Sothebys as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including poor profit margins and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 0.4%. Since the same quarter one year prior, revenues rose by 46.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Diversified Consumer Services industry. The net income increased by 35.5% when compared to the same quarter one year prior, rising from -$27.73 million to -$17.89 million.
- SOTHEBY'S has improved earnings per share by 35.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SOTHEBY'S reported lower earnings of $1.68 versus $1.86 in the prior year. This year, the market expects an improvement in earnings ($2.15 versus $1.68).
- BID has underperformed the S&P 500 Index, declining 18.84% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The gross profit margin for SOTHEBY'S is rather low; currently it is at 18.10%. It has decreased from the same quarter the previous year.
- You can view the full Sothebys Ratings Report.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.