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 Quiksilver as such a stock due to the following factors:
- ZQK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.0 million.
- ZQK has traded 264,358 shares today.
- ZQK is trading at 4.22 times the normal volume for the stock at this time of day.
- ZQK is trading at a new high 7.53% 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 ZQK:
Quiksilver, Inc. designs, develops, markets, and distributes branded apparel, footwear, accessories, and related products primarily for men, women, and children. Currently there is 1 analyst that rates Quiksilver a buy, no analysts rate it a sell, and 6 rate it a hold.
The average volume for Quiksilver has been 3.0 million shares per day over the past 30 days. Quiksilver has a market cap of $267.0 million and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 4.01 and a short float of 24.9% with 19.72 days to cover. Shares are down 81.5% year-to-date as of the close of trading on Thursday.
rates Quiksilver as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally high debt management risk and feeble growth in its earnings per share.
Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry. The net income has significantly decreased by 10727.0% when compared to the same quarter one year ago, falling from $2.07 million to -$220.09 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Textiles, Apparel & Luxury Goods industry and the overall market, QUIKSILVER INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The debt-to-equity ratio is very high at 7.49 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, ZQK's quick ratio is somewhat strong at 1.33, demonstrating the ability to handle short-term liquidity needs.
- QUIKSILVER INC's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, QUIKSILVER INC reported poor results of -$1.43 versus -$0.08 in the prior year. This year, the market expects an improvement in earnings (-$0.55 versus -$1.43).
- This stock's share value has moved by only 77.81% over the past year. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- You can view the full Quiksilver Ratings Report.