Water-Logged And Getting Wetter: Ascena Retail Group (ASNA)
Trade-Ideas LLC identified
(
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Ascena Retail Group as such a stock due to the following factors:
- ASNA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $33.0 million.
- ASNA has traded 2.3 million shares today.
- ASNA traded in a range 244.4% of the normal price range with a price range of $1.56.
- ASNA traded below its daily resistance level (quality: 76 days, meaning that the stock is crossing a resistance level set by the last 76 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on ASNA:
Ascena Retail Group, Inc., through its subsidiaries, operates as a specialty retailer of clothing, shoes, and accessories for missy, plus-size women, and tween girls in the United States, Canada, and Puerto Rico. Currently there are 5 analysts that rate Ascena Retail Group a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Ascena Retail Group has been 4.6 million shares per day over the past 30 days. Ascena Retail Group has a market cap of $2.4 billion and is part of the services sector and retail industry. The stock has a beta of 0.96 and a short float of 17.3% with 9.42 days to cover. Shares are down 1% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates Ascena Retail Group as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and feeble growth in its earnings per share.
Highlights from the ratings report include:
- 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 Specialty Retail industry. The net income has significantly decreased by 2159.9% when compared to the same quarter one year ago, falling from $15.70 million to -$323.40 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Specialty Retail industry and the overall market, ASCENA RETAIL GROUP INC's return on equity significantly trails that of both the industry average and the S&P 500.
- ASCENA RETAIL GROUP INC 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 two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, ASCENA RETAIL GROUP INC swung to a loss, reporting -$1.46 versus $0.84 in the prior year. This year, the market expects an improvement in earnings ($0.78 versus -$1.46).
- ASNA, with its decline in revenue, underperformed when compared the industry average of 9.1%. Since the same quarter one year prior, revenues slightly dropped by 1.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The gross profit margin for ASCENA RETAIL GROUP INC is rather high; currently it is at 54.51%. Regardless of ASNA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ASNA's net profit margin of -27.64% significantly underperformed when compared to the industry average.
- You can view the full Ascena Retail Group Ratings Report.
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