Zagg (ZAGG): Today's Weak On High Volume Stock

Trade-Ideas LLC identified Zagg (ZAGG) as a weak on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Zagg

(

ZAGG

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

  • ZAGG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.1 million.
  • ZAGG has traded 345,989 shares today.
  • ZAGG is trading at 5.59 times the normal volume for the stock at this time of day.
  • ZAGG is trading at a new low 6.02% 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 ZAGG:

ZAGG Inc, together with its subsidiaries, designs, manufactures, and distributes product solutions for mobile devices. ZAGG has a PE ratio of 23. Currently there are 4 analysts that rate Zagg a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Zagg has been 906,400 shares per day over the past 30 days. Zagg has a market cap of $203.8 million and is part of the services sector and specialty retail industry. The stock has a beta of 1.17 and a short float of 8.8% with 1.18 days to cover. Shares are down 35.9% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Zagg as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:

  • ZAGG's revenue growth has slightly outpaced the industry average of 3.7%. Since the same quarter one year prior, revenues slightly increased by 9.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The current debt-to-equity ratio, 0.58, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.48 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • Net operating cash flow has significantly decreased to -$3.99 million or 153.31% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 25.67%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 209.09% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.

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