SUPERVALU (SVU) Flagged As Strong On High Volume
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified SUPERVALU as such a stock due to the following factors:
- SVU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $27 million
- SVU has traded 3.7 million shares today
- SVU is trading at 7.01 times the normal volume for the stock at this time of day
- SVU is trading at a new high 3.0422024767644000320387931424193084239959716796875 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 SVU:
SUPERVALU INC., together with its subsidiaries, operates as a wholesale distributor to independent retail customers in the United States. It operates in three segments: Retail Food, Save-A-Lot, and Independent Business. SVU has a PE ratio of 21.3299999999999982946974341757595539093017578125. Currently there is one analyst that rates SUPERVALU a buy, one analyst rates it a sell, and four rate it a hold.
The average volume for SUPERVALU has been 2.9 million shares per day over the past 30 days. SUPERVALU has a market cap of $2.68 billion and is part of the services sector and retail industry. The stock has a beta of 2.64 and a short float of 5.4% with 3.67 days to cover. Shares are up 5% year-to-date as of the close of trading on Monday.
Analysis:
rates SUPERVALU as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including poor profit margins and weak operating cash flow.
Highlights from the ratings report include:
- SVU's revenue growth has slightly outpaced the industry average of 0.0%. Since the same quarter one year prior, revenues slightly increased by 4.8%. 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.
- Compared to its closing price of one year ago, SVU's share price has jumped by 51.74%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- SUPERVALU INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, SUPERVALU INC turned its bottom line around by earning $0.00 versus -$1.23 in the prior year. This year, the market expects an increase in earnings to $0.69 from $0.00.
- The gross profit margin for SUPERVALU INC is currently extremely low, coming in at 14.11%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.87% trails that of the industry average.
- Net operating cash flow has decreased to -$54.00 million or 28.57% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full SUPERVALU Ratings Report
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