Trade-Ideas LLC identified

Buffalo Wild Wings

(

BWLD

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

  • BWLD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $97.6 million.
  • BWLD has traded 77,230 shares today.
  • BWLD is trading at 2.72 times the normal volume for the stock at this time of day.
  • BWLD is trading at a new high 4.01% 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 BWLD:

Buffalo Wild Wings, Inc. engages in the ownership, operation, and franchise of restaurants worldwide. The company's restaurants provide various food products and alcoholic beverages. BWLD has a PE ratio of 31. Currently there are 11 analysts that rate Buffalo Wild Wings a buy, 1 analyst rates it a sell, and 10 rate it a hold.

The average volume for Buffalo Wild Wings has been 635,000 shares per day over the past 30 days. Buffalo Wild Wings has a market cap of $2.7 billion and is part of the services sector and leisure industry. The stock has a beta of 0.78 and a short float of 16.9% with 3.91 days to cover. Shares are down 7.6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Buffalo Wild Wings as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • BWLD's revenue growth has slightly outpaced the industry average of 11.6%. Since the same quarter one year prior, revenues rose by 19.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • BUFFALO WILD WINGS INC has improved earnings per share by 23.4% 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. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, BUFFALO WILD WINGS INC increased its bottom line by earning $4.96 versus $4.95 in the prior year. This year, the market expects an improvement in earnings ($6.15 versus $4.96).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Hotels, Restaurants & Leisure industry average. The net income increased by 24.4% when compared to the same quarter one year prior, going from $20.32 million to $25.27 million.
  • BWLD's debt-to-equity ratio is very low at 0.11 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.29 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market on the basis of return on equity, BUFFALO WILD WINGS INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

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