Trade-Ideas LLC identified

Libbey

(

LBY

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

  • LBY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.9 million.
  • LBY has traded 382,486 shares today.
  • LBY is trading at 13.86 times the normal volume for the stock at this time of day.
  • LBY is trading at a new high 3.37% 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 LBY:

Libbey Inc. manufactures and markets glass tableware products worldwide. The stock currently has a dividend yield of 2.6%. LBY has a PE ratio of 6. Currently there are 2 analysts that rate Libbey a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Libbey has been 137,200 shares per day over the past 30 days. Libbey has a market cap of $378.7 million and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 1.10 and a short float of 2.1% with 2.99 days to cover. Shares are down 18.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Libbey as a

hold

. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, notable return on equity and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Household Durables industry. The net income increased by 62.5% when compared to the same quarter one year prior, rising from $19.76 million to $32.11 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 Household Durables industry and the overall market, LIBBEY INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • LBY, with its decline in revenue, slightly underperformed the industry average of 2.0%. Since the same quarter one year prior, revenues slightly dropped by 5.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The debt-to-equity ratio is very high at 2.90 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, LBY maintains a poor quick ratio of 0.94, which illustrates the inability to avoid short-term cash problems.
  • Net operating cash flow has decreased to $34.05 million or 47.46% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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