Trade-Ideas: G-III Apparel Group (GIII) Is Today's Strong On High Relative Volume Stock

Trade-Ideas LLC identified G-III Apparel Group (GIII) as a strong on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

G-III Apparel Group

(

GIII

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified G-III Apparel Group as such a stock due to the following factors:

  • GIII has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $31.9 million.
  • GIII has traded 86,036 shares today.
  • GIII is trading at 4.74 times the normal volume for the stock at this time of day.
  • GIII 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.

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More details on GIII:

G-III Apparel Group, Ltd. designs, manufactures, and markets women's and men's apparel. The company's products include outerwear, dresses, sportswear, swimwear, women's suits, and women's performance wear. GIII has a PE ratio of 18. Currently there are 8 analysts that rate G-III Apparel Group a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for G-III Apparel Group has been 422,100 shares per day over the past 30 days. G-III Apparel Group has a market cap of $2.2 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.55 and a short float of 8.1% with 3.45 days to cover. Shares are down 15.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates G-III Apparel Group as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and reasonable valuation levels. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:

  • Powered by its strong earnings growth of 86.20% and other important driving factors, this stock has surged by 35.69% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, GIII should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • G-III APPAREL GROUP LTD reported significant earnings per share improvement 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. During the past fiscal year, G-III APPAREL GROUP LTD increased its bottom line by earning $2.42 versus $1.85 in the prior year. This year, the market expects an improvement in earnings ($2.88 versus $2.42).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry. The net income increased by 99.7% when compared to the same quarter one year prior, rising from $6.24 million to $12.45 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 15.9%. Since the same quarter one year prior, revenues rose by 11.8%. Growth in the company's revenue appears to have helped boost the earnings per share.

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