Movado Group (MOV) Strong On High Relative Volume Today - TheStreet

Trade-Ideas LLC identified

Movado Group

(

MOV

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

  • MOV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.9 million.
  • MOV has traded 88,862 shares today.
  • MOV is trading at 3.14 times the normal volume for the stock at this time of day.
  • MOV is trading at a new high 3.16% 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 MOV:

Movado Group, Inc. designs, sources, markets, and distributes fine watches in the United States and internationally. The company operates in two segments, Wholesale and Retail. The stock currently has a dividend yield of 1.6%. MOV has a PE ratio of 14. Currently there are no analysts that rate Movado Group a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Movado Group has been 202,600 shares per day over the past 30 days. Movado Group has a market cap of $445.3 million and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 0.39 and a short float of 9.3% with 4.21 days to cover. Shares are down 5.2% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Movado Group as a

hold

. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • MOVADO GROUP INC has improved earnings per share by 5.7% 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. This trend suggests that the performance of the business is improving. During the past fiscal year, MOVADO GROUP INC increased its bottom line by earning $2.03 versus $1.97 in the prior year. This year, the market expects an improvement in earnings ($2.04 versus $2.03).
  • MOV's debt-to-equity ratio is very low at 0.09 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.51, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for MOVADO GROUP INC is rather high; currently it is at 55.70%. 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 11.59% trails the industry average.
  • MOV has underperformed the S&P 500 Index, declining 6.58% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Textiles, Apparel & Luxury Goods industry average, but is greater than that of the S&P 500. The net income has decreased by 3.0% when compared to the same quarter one year ago, dropping from $22.21 million to $21.53 million.

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