Trade-Ideas LLC identified

Caleres

(

CAL

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

  • CAL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.2 million.
  • CAL has traded 67,101 shares today.
  • CAL is trading at 3.94 times the normal volume for the stock at this time of day.
  • CAL 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.

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More details on CAL:

Caleres, Inc., a footwear company, retails and wholesales footwear in the United States, Canada, Guam, and internationally. The company operates through two segments, Famous Footwear and Brand Portfolio. The stock currently has a dividend yield of 1.1%. CAL has a PE ratio of 14. Currently there are 6 analysts that rate Caleres a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Caleres has been 372,100 shares per day over the past 30 days. Caleres has a market cap of $1.1 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.07 and a short float of 0% with 1.60 days to cover. Shares are down 5.2% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Caleres as a

buy

. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • Net operating cash flow has significantly increased by 197.34% to $65.16 million when compared to the same quarter last year. In addition, CALERES INC has also vastly surpassed the industry average cash flow growth rate of 19.63%.
  • The current debt-to-equity ratio, 0.32, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.85 is somewhat weak and could be cause for future problems.
  • 42.38% is the gross profit margin for CALERES INC which we consider to be strong. Regardless of CAL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 3.04% trails the industry average.
  • CALERES INC's earnings per share declined by 6.8% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, CALERES INC reported lower earnings of $1.86 versus $1.88 in the prior year. This year, the market expects an improvement in earnings ($2.10 versus $1.86).

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