Trade-Ideas LLC identified

Lands' End

(

LE

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

  • LE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.3 million.
  • LE has traded 115,050 shares today.
  • LE is trading at 2.12 times the normal volume for the stock at this time of day.
  • LE is trading at a new low 3.04% 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 LE:

Lands' End, Inc. operates as a multi-channel retailer. The company operates through two segments, Direct and Retail. It offers casual clothing, accessories, footwear, and home products. Currently there are 2 analysts that rate Lands' End a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Lands' End has been 184,300 shares per day over the past 30 days. Lands' End has a market cap of $557.2 million and is part of the services sector and retail industry. Shares are down 25.6% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Lands' End as a

hold

. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and generally higher debt management risk.

Highlights from the ratings report include:

  • Net operating cash flow has slightly increased to $130.69 million or 4.07% when compared to the same quarter last year. In addition, LANDS' END INC has also vastly surpassed the industry average cash flow growth rate of -66.84%.
  • 42.05% is the gross profit margin for LANDS' END INC which we consider to be strong. Regardless of LE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, LE's net profit margin of -8.33% significantly underperformed when compared to the industry average.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Internet & Catalog Retail industry and the overall market, LANDS' END INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • 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 Internet & Catalog Retail industry. The net income has significantly decreased by 219.2% when compared to the same quarter one year ago, falling from $33.10 million to -$39.46 million.

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