Usana Health (USNA) Marked As A Dead Cat Bounce Stock
Trade-Ideas LLC identified
(
) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Usana Health as such a stock due to the following factors:
- USNA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.4 million.
- USNA has traded 74,685 shares today.
- USNA is up 9.3% today.
- USNA was down 11.7% yesterday.
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More details on USNA:
USANA Health Sciences, Inc. develops, manufactures, and sells science-based nutritional and personal care products primarily to reduce the risk of chronic degenerative disease worldwide. USNA has a PE ratio of 2. Currently there is 1 analyst that rates Usana Health a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Usana Health has been 124,400 shares per day over the past 30 days. Usana Health has a market cap of $1.7 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.00 and a short float of 14.4% with 4.84 days to cover. Shares are up 12.4% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Usana Health as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 0.6%. Since the same quarter one year prior, revenues rose by 21.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- USNA has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- USANA HEALTH SCIENCES INC has improved earnings per share by 30.6% 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, USANA HEALTH SCIENCES INC increased its bottom line by earning $5.63 versus $5.57 in the prior year. This year, the market expects an improvement in earnings ($7.16 versus $5.63).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Personal Products industry average. The net income increased by 31.3% when compared to the same quarter one year prior, rising from $19.50 million to $25.61 million.
- You can view the full Usana Health Ratings Report.
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