Trade-Ideas: Carlyle Group L P (CG) Is Today's Strong On High Relative Volume Stock
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 Carlyle Group L P as such a stock due to the following factors:
- CG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.0 million.
- CG has traded 169,627 shares today.
- CG is trading at 3.67 times the normal volume for the stock at this time of day.
- CG is trading at a new high 3.10% 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 CG:
The Carlyle Group LP is an investment firm specializing in direct and fund of fund investments. The stock currently has a dividend yield of 8%. CG has a PE ratio of 21.1. Currently there are 5 analysts that rate Carlyle Group L P a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Carlyle Group L P has been 572,100 shares per day over the past 30 days. Carlyle Group L P has a market cap of $1.8 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.87 and a short float of 1.1% with 0.69 days to cover. Shares are down 5.7% year-to-date as of the close of trading on Tuesday.
Analysis:
rates Carlyle Group L P as a
. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, deteriorating net income and feeble growth in its earnings per share.
Highlights from the ratings report include:
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 32.01%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 80.34% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, CG is still more expensive than most of the other companies in its industry.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Capital Markets industry. The net income has significantly decreased by 77.1% when compared to the same quarter one year ago, falling from $71.30 million to $16.30 million.
- CARLYLE GROUP LP 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. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, CARLYLE GROUP LP reported lower earnings of $1.26 versus $1.80 in the prior year. This year, the market expects an improvement in earnings ($2.62 versus $1.26).
- The revenue fell significantly faster than the industry average of 12.8%. Since the same quarter one year prior, revenues fell by 48.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full Carlyle Group L P Ratings Report.
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