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.

Trade-Ideas LLC identified

Burlington Stores

(

BURL

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

  • BURL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $95.9 million.
  • BURL has traded 216,975 shares today.
  • BURL is trading at 7.10 times the normal volume for the stock at this time of day.
  • BURL is trading at a new low 3.03% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in BURL with the Ticky from Trade-Ideas. See the FREE profile for BURL NOW at Trade-Ideas

More details on BURL:

Burlington Stores, Inc. operates as a retailer of branded apparel products in the United States. The company provides fashion-focused merchandise, such as women's ready-to-wear apparel, menswear, youth apparel, baby products, footwear, accessories, home goods, and coats. Currently there are 9 analysts that rate Burlington Stores a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Burlington Stores has been 1.1 million shares per day over the past 30 days. Burlington Stores has a market cap of $4.5 billion and is part of the services sector and retail industry. Shares are up 29.1% year-to-date as of the close of trading on Tuesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Burlington Stores as a

sell

. The area that we feel has been the company's primary weakness has been its weak operating cash flow.

Highlights from the ratings report include:

  • This stock has increased by 130.81% over the past year, outperforming the rise in the S&P 500 Index during the same period. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • Net operating cash flow has slightly increased to $213.83 million or 3.76% when compared to the same quarter last year. Despite an increase in cash flow, BURLINGTON STORES INC's cash flow growth rate is still lower than the industry average growth rate of 24.45%.
  • 42.62% is the gross profit margin for BURLINGTON STORES INC which we consider to be strong. It has increased from the same quarter the previous year.
  • BURLINGTON STORES INC has improved earnings per share by 47.6% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, BURLINGTON STORES INC increased its bottom line by earning $0.85 versus $0.61 in the prior year. This year, the market expects an improvement in earnings ($2.26 versus $0.85).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Multiline Retail industry. The net income increased by 49.2% when compared to the same quarter one year prior, rising from $63.58 million to $94.87 million.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

null