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
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Cott as such a stock due to the following factors:
- COT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.1 million.
- COT has traded 75,440 shares today.
- COT is trading at 3.89 times the normal volume for the stock at this time of day.
- COT is trading at a new high 5.20% 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 COT:
Cott Corporation, together with its subsidiaries, produces and sells beverages on behalf of retailers, brand owners, and distributors worldwide. The stock currently has a dividend yield of 2.3%. COT has a PE ratio of 129. Currently there are 3 analysts that rate Cott a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Cott has been 618,300 shares per day over the past 30 days. Cott has a market cap of $959.6 million and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 1.16 and a short float of 2.5% with 3.48 days to cover. Shares are up 51% year-to-date as of the close of trading on Wednesday.
rates Cott as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and feeble growth in the company's earnings per share.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 8.7%. Since the same quarter one year prior, revenues rose by 49.4%. 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.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Beverages industry average. The net income increased by 39.0% when compared to the same quarter one year prior, rising from -$4.10 million to -$2.50 million.
- Compared to its closing price of one year ago, COT's share price has jumped by 57.95%, exceeding the performance of the broader market during that same time frame. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
- The debt-to-equity ratio is very high at 2.71 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, COT has a quick ratio of 0.58, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- 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. Compared to other companies in the Beverages industry and the overall market, COTT CORP QUE's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Cott Ratings Report.