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 strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Life Time Fitness as such a stock due to the following factors:
- LTM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $25.2 million.
- LTM has traded 264,269 shares today.
- LTM is trading at 46.39 times the normal volume for the stock at this time of day.
- LTM is trading at a new high 17.03% 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 LTM:
Life Time Fitness, Inc. designs, builds, and operates sports and athletic, professional fitness, family recreation, and spa centers. LTM has a PE ratio of 19.7. Currently there are 3 analysts that rate Life Time Fitness a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for Life Time Fitness has been 255,900 shares per day over the past 30 days. Life Time Fitness has a market cap of $2.3 billion and is part of the services sector and leisure industry. The stock has a beta of 1.44 and a short float of 10.3% with 10.90 days to cover. Shares are up 1.9% year-to-date as of the close of trading on Thursday.
rates Life Time Fitness as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, expanding profit margins, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 7.7%. Since the same quarter one year prior, revenues slightly increased by 8.3%. 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.
- 36.33% is the gross profit margin for LIFE TIME FITNESS 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 7.09% trails the industry average.
- Net operating cash flow has slightly increased to $71.40 million or 5.53% when compared to the same quarter last year. Despite an increase in cash flow, LIFE TIME FITNESS INC's cash flow growth rate is still lower than the industry average growth rate of 18.50%.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. 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.
- You can view the full Life Time Fitness Ratings Report.