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

DSW

(

DSW

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified DSW as such a stock due to the following factors:

  • DSW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $37.0 million.
  • DSW traded 299,694 shares today in the pre-market hours as of 8:42 AM, representing 20.9% of its average daily volume.

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More details on DSW:

DSW Inc. operates as a branded footwear and accessories retailer in the United States. The company operates in two segments, DSW and Affiliated Business Group. The stock currently has a dividend yield of 2.3%. DSW has a PE ratio of 20.0. Currently there are 4 analysts that rate DSW a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for DSW has been 1.2 million shares per day over the past 30 days. DSW has a market cap of $2.7 billion and is part of the services sector and retail industry. The stock has a beta of 0.52 and a short float of 2.8% with 1.28 days to cover. Shares are down 22.9% year-to-date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates DSW as a

buy

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • DSW 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. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.30, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has increased to $94.56 million or 16.24% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -8.51%.
  • DSW INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, DSW INC increased its bottom line by earning $1.64 versus $1.60 in the prior year. This year, the market expects an improvement in earnings ($1.90 versus $1.64).
  • The net income growth from the same quarter one year ago has exceeded that of the Specialty Retail industry average, but is less than that of the S&P 500. The net income increased by 3.5% when compared to the same quarter one year prior, going from $27.15 million to $28.11 million.
  • DSW, with its decline in revenue, slightly underperformed the industry average of 3.4%. Since the same quarter one year prior, revenues slightly dropped by 3.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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