Trade-Ideas LLC identified

Carter's

(

CRI

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

  • CRI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $50.8 million.
  • CRI has traded 294,861 shares today.
  • CRI is trading at 33.65 times the normal volume for the stock at this time of day.
  • CRI is trading at a new low 8.05% 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 CRI with the Ticky from Trade-Ideas. See the FREE profile for CRI NOW at Trade-Ideas

More details on CRI:

Carter's, Inc. and its subsidiaries design, source, and market branded childrenswear under the Carter's, Child of Mine, Just One You, Precious Firsts, OshKosh, and other brands. The stock currently has a dividend yield of 1.2%. CRI has a PE ratio of 24. Currently there are 4 analysts that rate Carter's a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Carter's has been 454,000 shares per day over the past 30 days. Carter's has a market cap of $5.7 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.22 and a short float of 2% with 1.67 days to cover. Shares are up 25.2% 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 Carter's as a

buy

. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, notable return on equity and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:

  • CARTER'S INC has improved earnings per share by 10.6% 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 two years. We feel that this trend should continue. During the past fiscal year, CARTER'S INC increased its bottom line by earning $4.52 versus $3.63 in the prior year. This year, the market expects an improvement in earnings ($5.14 versus $4.52).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry average. The net income increased by 8.4% when compared to the same quarter one year prior, going from $49.79 million to $53.98 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 7.1%. Since the same quarter one year prior, revenues slightly increased by 5.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Textiles, Apparel & Luxury Goods industry and the overall market, CARTER'S INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • Net operating cash flow has increased to $128.28 million or 47.07% when compared to the same quarter last year. In addition, CARTER'S INC has also vastly surpassed the industry average cash flow growth rate of -100.84%.

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.