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 strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Arctic Cat as such a stock due to the following factors:
- ACAT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.8 million.
- ACAT has traded 86,963 shares today.
- ACAT is trading at 11.37 times the normal volume for the stock at this time of day.
- ACAT is trading at a new high 10.11% 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 ACAT:
Arctic Cat Inc. designs, engineers, manufactures, and markets snowmobiles and all-terrain vehicles (ATVs), and recreational off-highway vehicles under the Arctic Cat brand name. It also provides related parts, garments, and accessories. The stock currently has a dividend yield of 1.7%. ACAT has a PE ratio of 13.2. Currently there are 2 analysts that rate Arctic Cat a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Arctic Cat has been 170,200 shares per day over the past 30 days. Arctic Cat has a market cap of $384.3 million and is part of the consumer goods sector and automotive industry. The stock has a beta of 3.12 and a short float of 5% with 2.13 days to cover. Shares are down 15.6% year-to-date as of the close of trading on Wednesday.
rates Arctic Cat as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- ACAT's revenue growth has slightly outpaced the industry average of 4.6%. Since the same quarter one year prior, revenues rose by 10.0%. 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.
- Net operating cash flow has significantly increased by 983.84% to $5.64 million when compared to the same quarter last year. In addition, ARCTIC CAT INC has also vastly surpassed the industry average cash flow growth rate of 16.61%.
- ACAT's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.76 is somewhat weak and could be cause for future problems.
- ARCTIC CAT INC's earnings per share declined by 30.6% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. Despite the past stability of earnings, the consensus estimate anticipates a weakening in earnings. During the past fiscal year, ARCTIC CAT INC increased its bottom line by earning $2.87 versus $2.86 in the prior year. For the next year, the market is expecting a contraction of 31.4% in earnings ($1.97 versus $2.87).
- You can view the full Arctic Cat Ratings Report.