Trade-Ideas LLC identified

Habit Restaurants

(

HABT

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

  • HABT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.5 million.
  • HABT has traded 74,565 shares today.
  • HABT is trading at 3.28 times the normal volume for the stock at this time of day.
  • HABT is trading at a new high 3.00% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in HABT with the Ticky from Trade-Ideas. See the FREE profile for HABT NOW at Trade-Ideas

More details on HABT:

The Habit Restaurants, Inc. operates fast casual restaurants under The Habit Burger Grill name in California, Arizona, Utah, and New Jersey. The company offers charbroiled hamburgers, specialty sandwiches, fresh salads, and shakes and malts. HABT has a PE ratio of 124. Currently there are 6 analysts that rate Habit Restaurants a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Habit Restaurants has been 294,800 shares per day over the past 30 days. Habit has a market cap of $322.9 million and is part of the services sector and leisure industry. Shares are down 26.9% year-to-date as of the close of trading on Monday.

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 Habit Restaurants as a

sell

. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • The gross profit margin for HABIT RESTAURANTS INC (THE) is rather low; currently it is at 21.34%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.56% significantly trails the industry average.
  • This stock's share value has moved by only 28.59% over the past year. 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.
  • In comparison to the other companies in the Hotels, Restaurants & Leisure industry and the overall market, HABIT RESTAURANTS INC (THE)'s return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • HABT's debt-to-equity ratio is very low at 0.03 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, HABT has a quick ratio of 2.48, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has improved to $10.73 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.

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.