Cabela's (CAB) Strong On High Relative Volume Today - TheStreet

Trade-Ideas LLC identified

Cabela's

(

CAB

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

  • CAB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $138.1 million.
  • CAB has traded 835,728 shares today.
  • CAB is trading at 16.97 times the normal volume for the stock at this time of day.
  • CAB is trading at a new high 12.03% 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 CAB:

Cabela's Incorporated, together with its subsidiaries, operates as a specialty retailer and direct marketer of hunting, fishing, camping, and related outdoor merchandise. The company operates through three segments: Retail, Direct, and Financial Services. CAB has a PE ratio of 13. Currently there are 5 analysts that rate Cabela's a buy, 1 analyst rates it a sell, and 10 rate it a hold.

The average volume for Cabela's has been 1.5 million shares per day over the past 30 days. Cabela's has a market cap of $2.3 billion and is part of the services sector and specialty retail industry. The stock has a beta of 0.83 and a short float of 19.2% with 2.64 days to cover. Shares are down 36.6% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Cabela's as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and generally higher debt management risk.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.8%. Since the same quarter one year prior, revenues slightly increased by 4.6%. 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.
  • 44.47% is the gross profit margin for CABELAS INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 4.71% trails the industry average.
  • 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. In comparison to the other companies in the Specialty Retail industry and the overall market, CABELAS INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Specialty Retail industry average. The net income has decreased by 18.8% when compared to the same quarter one year ago, dropping from $53.84 million to $43.71 million.

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