Trade-Ideas LLC identified

Knoll

(

KNL

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

  • KNL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.4 million.
  • KNL has traded 75,303 shares today.
  • KNL is trading at 8.93 times the normal volume for the stock at this time of day.
  • KNL is trading at a new low 8.06% 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 KNL:

Knoll, Inc., together with its subsidiaries, designs, manufactures, markets, and sells furnishings and accessories, textiles, fine leathers, and felt for the workplace and home in the United States, Canada, and Europe. It operates through Office, Studio, and Coverings segments. The stock currently has a dividend yield of 3%. KNL has a PE ratio of 15. Currently there are 2 analysts that rate Knoll a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Knoll has been 252,500 shares per day over the past 30 days. Knoll has a market cap of $989.2 million and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 0.85 and a short float of 1.9% with 2.61 days to cover. Shares are down 3.4% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Knoll as a

buy

. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, notable return on equity, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • KNOLL INC has improved earnings per share by 12.1% 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 year. We feel that this trend should continue. During the past fiscal year, KNOLL INC increased its bottom line by earning $0.98 versus $0.48 in the prior year. This year, the market expects an improvement in earnings ($1.51 versus $0.98).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Commercial Services & Supplies industry average. The net income increased by 14.1% when compared to the same quarter one year prior, going from $15.63 million to $17.83 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Commercial Services & Supplies industry and the overall market, KNOLL INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • 39.91% is the gross profit margin for KNOLL 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 6.76% trails the industry average.
  • After a year of stock price fluctuations, the net result is that KNL's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.

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