Perilous Reversal Watch: Hibbett Sports (HIBB) - TheStreet

Trade-Ideas LLC identified

Hibbett Sports

(

HIBB

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Hibbett Sports as such a stock due to the following factors:

  • HIBB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $53.6 million.
  • HIBB has traded 178,895 shares today.
  • HIBB is down 4.1% today.
  • HIBB was up 16.2% yesterday.

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More details on HIBB:

Hibbett Sports, Inc., together with its subsidiaries, operates sporting goods retail stores in small and mid-sized markets primarily in the South, Southwest, Mid-Atlantic, and the Midwest regions of the United States. HIBB has a PE ratio of 1. Currently there are 2 analysts that rate Hibbett Sports a buy, 2 analysts rate it a sell, and 9 rate it a hold.

The average volume for Hibbett Sports has been 552,500 shares per day over the past 30 days. Hibbett Sports has a market cap of $682.7 million and is part of the services sector and specialty retail industry. The stock has a beta of 1.19 and a short float of 15.3% with 2.25 days to cover. Shares are down 31.2% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Hibbett Sports as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 4.2%. Since the same quarter one year prior, revenues slightly increased by 2.8%. 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.
  • HIBB's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • Net operating cash flow has significantly decreased to -$1.61 million or 254.76% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Specialty Retail industry average, but is greater than that of the S&P 500. The net income has decreased by 16.1% when compared to the same quarter one year ago, dropping from $8.38 million to $7.03 million.

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