Trade-Ideas LLC identified

Interface

(

TILE

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

  • TILE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.2 million.
  • TILE has traded 147,537 shares today.
  • TILE is trading at 8.53 times the normal volume for the stock at this time of day.
  • TILE is trading at a new high 6.19% 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 TILE:

Interface, Inc. designs, produces, and sells modular carpet products primarily in the Americas, Europe, and the Asia-Pacific. The stock currently has a dividend yield of 1.2%. TILE has a PE ratio of 15. Currently there are 2 analysts that rate Interface a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Interface has been 649,000 shares per day over the past 30 days. Interface has a market cap of $1.1 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.21 and a short float of 2.5% with 3.33 days to cover. Shares are down 13.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Interface as a

buy

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels, expanding profit margins and growth in earnings per share. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • The debt-to-equity ratio is somewhat low, currently at 0.65, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, TILE has a quick ratio of 1.56, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Commercial Services & Supplies industry and the overall market, INTERFACE INC's return on equity exceeds that of both the industry average and the S&P 500.
  • 42.30% is the gross profit margin for INTERFACE INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 5.79% trails the industry average.
  • INTERFACE INC has improved earnings per share by 5.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, INTERFACE INC increased its bottom line by earning $1.11 versus $0.37 in the prior year. For the next year, the market is expecting a contraction of 0.9% in earnings ($1.10 versus $1.11).

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