Trade-Ideas LLC identified

GNC Holdings

(

GNC

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified GNC Holdings as such a stock due to the following factors:

  • GNC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $149.9 million.
  • GNC has traded 393,991 shares today.
  • GNC is up 3.3% today.
  • GNC was down 26.9% yesterday.

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More details on GNC:

GNC Holdings, Inc. operates as a specialty retailer of health and wellness products. The company operates through three segments: Retail, Franchise, and Manufacturing/Wholesale. The stock currently has a dividend yield of 1.9%. GNC has a PE ratio of 14. Currently there are 4 analysts that rate GNC Holdings a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Recommends

The average volume for GNC Holdings has been 1.5 million shares per day over the past 30 days. GNC has a market cap of $3.1 billion and is part of the services sector and retail industry. The stock has a beta of 1.44 and a short float of 4.1% with 0.62 days to cover. Shares are down 39.9% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates GNC Holdings as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, good cash flow from operations and growth in earnings per share. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.8%. Since the same quarter one year prior, revenues slightly increased by 0.5%. 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 Specialty Retail industry and the overall market, GNC HOLDINGS 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 significantly increased by 122.73% to $67.26 million when compared to the same quarter last year. In addition, GNC HOLDINGS INC has also vastly surpassed the industry average cash flow growth rate of -10.77%.
  • GNC HOLDINGS INC's earnings per share improvement from the most recent quarter was slightly positive. 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, GNC HOLDINGS INC increased its bottom line by earning $2.81 versus $2.72 in the prior year. This year, the market expects an improvement in earnings ($3.05 versus $2.81).

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