Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified 1-800 Flowers.com as such a stock due to the following factors:
- FLWS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.1 million.
- FLWS has traded 129,466 shares today.
- FLWS is trading at 7.58 times the normal volume for the stock at this time of day.
- FLWS is trading at a new low 3.10% 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 FLWS:
1-800-FLOWERS.COM, Inc. operates a florist and gift shop in the United States. The company operates in three segments: Consumer Floral, Gourmet Food and Gift Baskets, and BloomNet Wire Service. FLWS has a PE ratio of 35.9. Currently there are 2 analysts that rate 1-800 Flowers.com a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for 1-800 Flowers.com has been 221,100 shares per day over the past 30 days. 1-800 Flowers.com has a market cap of $215.6 million and is part of the services sector and specialty retail industry. The stock has a beta of 1.18 and a short float of 4.2% with 2.01 days to cover. Shares are up 9.7% year-to-date as of the close of trading on Monday.
rates 1-800 Flowers.com as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, reasonable valuation levels, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- FLWS's revenue growth has slightly outpaced the industry average of 3.3%. Since the same quarter one year prior, revenues slightly increased by 3.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
- Compared to its closing price of one year ago, FLWS's share price has jumped by 60.71%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, FLWS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- 42.08% is the gross profit margin for 1-800-FLOWERS.COM which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -3.35% trails the industry average.
- Net operating cash flow has slightly increased to -$59.53 million or 3.52% when compared to the same quarter last year. Despite an increase in cash flow, 1-800-FLOWERS.COM's average is still marginally south of the industry average growth rate of 4.83%.
- You can view the full 1-800 Flowers.com Ratings Report.