Natural Health Trends (NHTC) Is Today's Dead Cat Bounce Stock - TheStreet

Trade-Ideas LLC identified

Natural Health Trends

(

NHTC

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Natural Health Trends as such a stock due to the following factors:

  • NHTC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.4 million.
  • NHTC has traded 50,529 shares today.
  • NHTC is up 6.7% today.
  • NHTC was down 6.6% yesterday.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in NHTC with the Ticky from Trade-Ideas. See the FREE profile for NHTC NOW at Trade-Ideas

More details on NHTC:

Natural Health Trends Corp., a direct-selling and e-commerce company, provides wellness, beauty, and lifestyle products for consumers or business builders under the NHT Global brand name. The company manufactures and supplies its products through third parties. The stock currently has a dividend yield of 0.4%. NHTC has a PE ratio of 17.

The average volume for Natural Health Trends has been 261,100 shares per day over the past 30 days. Natural Health Trends has a market cap of $512.7 million and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.34 and a short float of 19.4% with 4.34 days to cover. Shares are up 237.4% year-to-date as of the close of trading on Tuesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Natural Health Trends as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, solid stock price performance and impressive record of earnings per share growth. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:

  • NHTC's very impressive revenue growth greatly exceeded the industry average of 2.0%. Since the same quarter one year prior, revenues leaped by 103.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • NHTC has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, NHTC has a quick ratio of 1.59, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Personal Products industry and the overall market, NATURAL HEALTH TRENDS CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Powered by its strong earnings growth of 100.00% and other important driving factors, this stock has surged by 318.94% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, NHTC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • NATURAL HEALTH TRENDS CORP reported significant earnings per share improvement 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 two years. During the past fiscal year, NATURAL HEALTH TRENDS CORP increased its bottom line by earning $1.62 versus $0.37 in the prior year.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.