Wesco Aircraft Holdings (WAIR) Highlighted As Weak On High Volume

Trade-Ideas LLC identified Wesco Aircraft Holdings (WAIR) as a weak on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Wesco Aircraft Holdings

(

WAIR

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Wesco Aircraft Holdings as such a stock due to the following factors:

  • WAIR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.4 million.
  • WAIR has traded 202,763 shares today.
  • WAIR is trading at 2.77 times the normal volume for the stock at this time of day.
  • WAIR is trading at a new low 7.06% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 WAIR:

Wesco Aircraft Holdings, Inc. distributes and provides supply chain management services to the aerospace industry in the North America and internationally. Currently there are no analysts that rate Wesco Aircraft Holdings a buy, 3 analysts rate it a sell, and 3 rate it a hold.

The average volume for Wesco Aircraft Holdings has been 344,400 shares per day over the past 30 days. Wesco Aircraft has a market cap of $1.4 billion and is part of the services sector and wholesale industry. The stock has a beta of 0.75 and a short float of 10.6% with 17.27 days to cover. Shares are up 17.2% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Wesco Aircraft Holdings as a

hold

. Among the primary strengths of the company is its growth in net income. At the same time, however, we also find weaknesses including disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:

  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 6.2%. Since the same quarter one year prior, revenues slightly dropped by 2.3%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
  • WESCO AIRCRAFT HOLDINGS INC reported flat earnings per share in the most recent quarter. 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, WESCO AIRCRAFT HOLDINGS INC swung to a loss, reporting -$1.60 versus $1.04 in the prior year. This year, the market expects an improvement in earnings ($1.10 versus -$1.60).
  • The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Transportation Infrastructure industry average. The net income increased by 1.9% when compared to the same quarter one year prior, going from $23.05 million to $23.49 million.
  • The gross profit margin for WESCO AIRCRAFT HOLDINGS INC is currently lower than what is desirable, coming in at 27.16%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 6.23% significantly trails the industry average.
  • Net operating cash flow has significantly decreased to $4.16 million or 89.09% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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