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Trade-Ideas LLC identified

Care.com

(

CRCM

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

  • CRCM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.4 million.
  • CRCM has traded 222,187 shares today.
  • CRCM is trading at 6.93 times the normal volume for the stock at this time of day.
  • CRCM 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 CRCM:

TheStreet Recommends

Care.com, Inc. operates an online marketplace for finding and managing family care in the United States and internationally. CRCM has a PE ratio of 1. Currently there is 1 analyst that rates Care.com a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Care.com has been 121,800 shares per day over the past 30 days. Care.com has a market cap of $275.9 million and is part of the technology sector and internet industry. Shares are up 63.1% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Care.com as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from the ratings report include:

  • CRCM's revenue growth has slightly outpaced the industry average of 20.6%. Since the same quarter one year prior, revenues rose by 22.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • CRCM 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, CRCM has a quick ratio of 1.87, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for CARE.COM INC is currently very high, coming in at 82.06%. 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 17.20% trails the industry average.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Internet Software & Services industry and the overall market, CARE.COM INC's return on equity significantly trails that of both the industry average and the S&P 500.

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