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 Kirby as such a stock due to the following factors:
- KEX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $52.2 million.
- KEX has traded 81,324 shares today.
- KEX is trading at 3.46 times the normal volume for the stock at this time of day.
- KEX is trading at a new low 4.01% 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 KEX:
Kirby Corporation, through its subsidiaries, provides marine transportation and diesel engine services primarily in the United States. Its Marine Transportation segment provides transportation services for the inland and coastal markets. KEX has a PE ratio of 16.2. Currently there are 5 analysts that rate Kirby a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Kirby has been 726,400 shares per day over the past 30 days. Kirby has a market cap of $4.5 billion and is part of the services sector and transportation industry. The stock has a beta of 1.06 and a short float of 2.2% with 2.42 days to cover. Shares are down 6.5% year-to-date as of the close of trading on Wednesday.
rates Kirby as a
. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 24.9%. Since the same quarter one year prior, revenues rose by 23.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- KEX's debt-to-equity ratio is very low at 0.29 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.07, which illustrates the ability to avoid short-term cash problems.
- KIRBY CORP has improved earnings per share by 10.7% 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. We feel that this trend should continue. During the past fiscal year, KIRBY CORP increased its bottom line by earning $4.45 versus $3.74 in the prior year. This year, the market expects an improvement in earnings ($4.91 versus $4.45).
- The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Marine industry average. The net income increased by 11.0% when compared to the same quarter one year prior, going from $69.12 million to $76.72 million.
- 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 Marine industry and the overall market on the basis of return on equity, KIRBY CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- You can view the full Kirby Ratings Report.