Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Brunswick as such a stock due to the following factors:
- BC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $96.7 million.
- BC has traded 548,623 shares today.
- BC is trading at 2.87 times the normal volume for the stock at this time of day.
- BC is trading at a new low 4.06% 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 BC:
Brunswick Corporation designs, manufactures, and markets recreation products in the United States and internationally. The stock currently has a dividend yield of 1.4%. BC has a PE ratio of 17. Currently there are 12 analysts that rate Brunswick a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Brunswick has been 1.2 million shares per day over the past 30 days. Brunswick has a market cap of $3.8 billion and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 1.65 and a short float of 3.2% with 1.32 days to cover. Shares are down 16.3% year-to-date as of the close of trading on Wednesday.
rates Brunswick as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and growth in earnings per share. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- BC's revenue growth has slightly outpaced the industry average of 3.6%. Since the same quarter one year prior, revenues slightly increased by 6.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.35, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.24, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has significantly increased by 171.42% to $127.30 million when compared to the same quarter last year. In addition, BRUNSWICK CORP has also vastly surpassed the industry average cash flow growth rate of 6.84%.
- BRUNSWICK CORP has improved earnings per share by 20.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BRUNSWICK CORP reported lower earnings of $2.05 versus $8.03 in the prior year. This year, the market expects an improvement in earnings ($2.85 versus $2.05).
- You can view the full Brunswick Ratings Report.