Today's Dead Cat Bounce Stock Is DSW (DSW)

Trade-Ideas LLC identified DSW (DSW) as a "dead cat bounce" (down big yesterday but up big today) candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

DSW

(

DSW

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified DSW as such a stock due to the following factors:

  • DSW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $101.1 million.
  • DSW has traded 3.0 million shares today.
  • DSW is up 3.1% today.
  • DSW was down 7.8% yesterday.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in DSW with the Ticky from Trade-Ideas. See the FREE profile for DSW NOW at Trade-Ideas

More details on DSW:

DSW Inc., together with its subsidiaries, operates as a branded footwear and accessories retailer in the United States. The company operates through two segments, DSW and Affiliated Business Group. The stock currently has a dividend yield of 3.3%. DSW has a PE ratio of 13. Currently there are 8 analysts that rate DSW a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for DSW has been 2.0 million shares per day over the past 30 days. DSW has a market cap of $2.0 billion and is part of the services sector and retail industry. The stock has a beta of 0.81 and a short float of 7.9% with 1.33 days to cover. Shares are down 39.4% 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.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates DSW as a

hold

. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and disappointing return on equity.

Highlights from the ratings report include:

  • DSW INC has improved earnings per share by 13.5% 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. This trend suggests that the performance of the business is improving. During the past fiscal year, DSW INC increased its bottom line by earning $1.69 versus $1.64 in the prior year. This year, the market expects an improvement in earnings ($1.86 versus $1.69).
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Specialty Retail industry average. The net income increased by 9.6% when compared to the same quarter one year prior, going from $34.33 million to $37.61 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Specialty Retail industry and the overall market on the basis of return on equity, DSW INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • Net operating cash flow has decreased to $65.18 million or 21.99% 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.

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.

Loading ...