Trade-Ideas LLC identified

Aaron's

(

AAN

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

  • AAN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $27.4 million.
  • AAN has traded 76,292 shares today.
  • AAN is trading at 3.41 times the normal volume for the stock at this time of day.
  • AAN is trading at a new high 3.02% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 AAN:

Aaron's, Inc. operates as a specialty retailer of furniture, consumer electronics, computers, appliances, and household accessories in the United States and Canada. The company operates in five segments: Sales and Lease Ownership, Progressive, HomeSmart, Franchise, and Manufacturing. The stock currently has a dividend yield of 0.2%. AAN has a PE ratio of 23. Currently there are 4 analysts that rate Aaron's a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Aaron's has been 686,600 shares per day over the past 30 days. Aaron's has a market cap of $2.8 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.78 and a short float of 9.1% with 6.16 days to cover. Shares are up 26.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Aaron's as a

buy

. 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, reasonable valuation levels 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:

  • AAN's revenue growth has slightly outpaced the industry average of 9.9%. Since the same quarter one year prior, revenues rose by 16.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.38, is low and is below the industry average, implying that there has been successful management of debt levels.
  • Powered by its strong earnings growth of 366.66% and other important driving factors, this stock has surged by 54.35% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Specialty Retail industry. The net income increased by 376.7% when compared to the same quarter one year prior, rising from $8.51 million to $40.55 million.

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