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

Container Store Group

(

TCS

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

  • TCS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.5 million.
  • TCS has traded 55,640 shares today.
  • TCS is trading at 3.56 times the normal volume for the stock at this time of day.
  • TCS is trading at a new high 4.03% 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 TCS:

The Container Store Group, Inc. is engaged in the retailing of storage and organization products in the United States. It operates in two segments, TCS and Elfa. TCS has a PE ratio of 3.1. Currently there are 2 analysts that rate Container Store Group a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Container Store Group has been 317,900 shares per day over the past 30 days. Container Store Group has a market cap of $902.5 million and is part of the services sector and specialty retail industry. Shares are up 3.7% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Container Store Group as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and generally high debt management risk.

Highlights from the ratings report include:

  • TCS's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 44.46%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
  • Currently the debt-to-equity ratio of 1.85 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with this, the company manages to maintain a quick ratio of 0.34, which clearly demonstrates the inability to cover short-term cash needs.
  • The gross profit margin for CONTAINER STORE GROUP is rather high; currently it is at 59.64%. Regardless of TCS'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 3.27% trails the industry average.
  • In comparison to the other companies in the Specialty Retail industry and the overall market, CONTAINER STORE GROUP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • Net operating cash flow has improved to $4.48 million from having none in the same quarter last year. Since the company had no net operating cash flow for the prior period, we cannot calculate a percent change in order to compare its growth rate with that of its industry average.

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