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 weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Steelcase as such a stock due to the following factors:
- SCS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.7 million.
- SCS has traded 155,791 shares today.
- SCS is trading at 12.35 times the normal volume for the stock at this time of day.
- SCS is trading at a new low 5.02% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 SCS:
Steelcase Inc. designs, manufactures, and distributes an integrated portfolio of furniture settings, user-centered technologies, and interior architectural products. The company operates through Americas, EMEA, and Other Category segments. The stock currently has a dividend yield of 2.4%. SCS has a PE ratio of 22.7. Currently there are 2 analysts that rate Steelcase a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Steelcase has been 405,400 shares per day over the past 30 days. Steelcase has a market cap of $1.6 billion and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 0.71 and a short float of 2.3% with 3.43 days to cover. Shares are up 12.2% year-to-date as of the close of trading on Friday.
rates Steelcase as a
. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, growth in earnings per share, increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- STEELCASE INC has improved earnings per share by 9.1% 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. We feel that this trend should continue. During the past fiscal year, STEELCASE INC increased its bottom line by earning $0.69 versus $0.29 in the prior year. This year, the market expects an improvement in earnings ($0.85 versus $0.69).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Commercial Services & Supplies industry average. The net income increased by 10.5% when compared to the same quarter one year prior, going from $27.60 million to $30.50 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 8.4%. Since the same quarter one year prior, revenues slightly increased by 3.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The current debt-to-equity ratio, 0.42, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.09, which illustrates the ability to avoid short-term cash problems.
- You can view the full Steelcase Ratings Report.