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 KKR as such a stock due to the following factors:
- KKR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $98.6 million.
- KKR has traded 284,032 shares today.
- KKR is trading at 2.22 times the normal volume for the stock at this time of day.
- KKR is trading at a new low 3.01% 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.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in KKR with the Ticky from Trade-Ideas. See the FREE profile for KKR NOW at Trade-Ideas
More details on KKR:
Kohlberg Kravis Roberts & Co. L.P. is a private equity investment firm specializing in direct and fund of fund investments. The stock currently has a dividend yield of 9%. KKR has a PE ratio of 10.7. Currently there are 7 analysts that rate KKR a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for KKR has been 2.9 million shares per day over the past 30 days. KKR has a market cap of $9.4 billion and is part of the financial sector and financial services industry. The stock has a beta of 2.00 and a short float of 1.4% with 0.86 days to cover. Shares are down 8.6% year-to-date as of the close of trading on Wednesday.
rates KKR as a
. Among the primary strengths of the company is its robust revenue growth -- not just in the most recent periods but in previous quarters as well. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- KKR's very impressive revenue growth greatly exceeded the industry average of 6.9%. Since the same quarter one year prior, revenues leaped by 56.7%. 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.
- KKR & CO LP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, KKR & CO LP increased its bottom line by earning $2.29 versus $2.23 in the prior year. This year, the market expects an improvement in earnings ($2.42 versus $2.29).
- The share price of KKR & CO LP has not done very well: it is down 5.02% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Capital Markets industry. The net income has significantly decreased by 56.1% when compared to the same quarter one year ago, falling from $204.74 million to $89.94 million.
- You can view the full KKR Ratings Report.