Today's Perilous Reversal Stock: Vitamin Shoppe (VSI)

Trade-Ideas LLC identified Vitamin Shoppe (VSI) as a "perilous reversal" (up big yesterday but down big today) candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Vitamin Shoppe

(

VSI

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Vitamin Shoppe as such a stock due to the following factors:

  • VSI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.5 million.
  • VSI has traded 54,200 shares today.
  • VSI is down 3.6% today.
  • VSI was up 8.1% yesterday.

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More details on VSI:

Vitamin Shoppe, Inc., through its subsidiaries, operates as a multi-channel specialty retailer and contract manufacturer of nutritional products in the United States. The company operates through three segments: Retail, Direct, and Manufacturing. VSI has a PE ratio of 16. Currently there are 4 analysts that rate Vitamin Shoppe a buy, 1 analyst rates it a sell, and 7 rate it a hold.

The average volume for Vitamin Shoppe has been 310,800 shares per day over the past 30 days. Vitamin Shoppe has a market cap of $882.6 million and is part of the services sector and specialty retail industry. The stock has a beta of 0.60 and a short float of 13.2% with 5.19 days to cover. Shares are down 33.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Vitamin Shoppe as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 8.9%. Since the same quarter one year prior, revenues slightly increased by 5.3%. 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.
  • 36.54% is the gross profit margin for VITAMIN SHOPPE INC which we consider to be strong. Regardless of VSI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 4.41% trails the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Specialty Retail industry average, but is greater than that of the S&P 500. The net income has decreased by 15.9% when compared to the same quarter one year ago, dropping from $16.93 million to $14.24 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. In comparison to the other companies in the Specialty Retail industry and the overall market, VITAMIN SHOPPE INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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