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Trade-Ideas LLC identified

Buckle

(

BKE

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

  • BKE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.7 million.
  • BKE has traded 51,664 shares today.
  • BKE is trading at 2.61 times the normal volume for the stock at this time of day.
  • BKE is trading at a new low 3.04% 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 BKE:

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TheStreet Recommends

The Buckle, Inc. operates as a retailer of casual apparel, footwear, and accessories for young men and women in the United States. The company markets a selection of brand name casual apparel, including denims, other casual bottoms, tops, sportswear, outerwear, accessories, and footwear. The stock currently has a dividend yield of 4.2%. BKE has a PE ratio of 8. Currently there are no analysts that rate Buckle a buy, 2 analysts rate it a sell, and 4 rate it a hold.

The average volume for Buckle has been 443,900 shares per day over the past 30 days. Buckle has a market cap of $1.2 billion and is part of the services sector and retail industry. The stock has a beta of 0.71 and a short float of 45.7% with 12.60 days to cover. Shares are down 22% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Buckle as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:

  • BKE has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, BKE has a quick ratio of 1.93, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has slightly increased to $105.73 million or 1.54% when compared to the same quarter last year. Despite an increase in cash flow, BUCKLE INC's average is still marginally south of the industry average growth rate of 11.27%.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. In comparison to other companies in the Specialty Retail industry and the overall market on the basis of return on equity, BUCKLE INC has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
  • BUCKLE INC's earnings per share declined by 9.6% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, BUCKLE INC reported lower earnings of $3.06 versus $3.38 in the prior year. For the next year, the market is expecting a contraction of 10.4% in earnings ($2.74 versus $3.06).

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