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 or Stephanie Link.
Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Crocs as such a stock due to the following factors:
- CROX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.4 million.
- CROX has traded 382,599 shares today.
- CROX is trading at 11.93 times the normal volume for the stock at this time of day.
- CROX is trading at a new low 4.02% 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 CROX:
Crocs, Inc., together with its subsidiaries, designs, develops, manufactures, markets, and distributes casual lifestyle footwear, apparel, and accessories for men, women, and children in the Americas, the Asia Pacific region, Japan, and Europe. Currently there are 4 analysts that rate Crocs a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Crocs has been 917,800 shares per day over the past 30 days. Crocs has a market cap of $877.8 million and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.26 and a short float of 9.9% with 8.84 days to cover. Shares are down 14.4% year-to-date as of the close of trading on Thursday.
rates Crocs as a
. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- 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 20.9% when compared to the same quarter one year prior, going from $13.04 million to $15.77 million.
- CROX's revenue growth trails the industry average of 17.7%. Since the same quarter one year prior, revenues slightly increased by 4.8%. 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 gross profit margin for CROCS INC is rather high; currently it is at 52.15%. Regardless of CROX'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 5.21% trails the industry average.
- Net operating cash flow has significantly decreased to $11.68 million or 79.34% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Textiles, Apparel & Luxury Goods industry and the overall market, CROCS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Crocs Ratings Report.