Trade-Ideas LLC identified
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Ascena Retail Group as such a stock due to the following factors:
- ASNA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $23.7 million.
- ASNA has traded 159,230 shares today.
- ASNA is trading at 2.26 times the normal volume for the stock at this time of day.
- ASNA is trading at a new high 4.06% 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 ASNA:
Ascena Retail Group, Inc., through its subsidiaries, operates as a specialty retailer of clothing, shoes, and accessories for missy, plus-size women, and tween girls in the United States, Canada, and Puerto Rico. ASNA has a PE ratio of 6. Currently there are 5 analysts that rate Ascena Retail Group a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Ascena Retail Group has been 3.1 million shares per day over the past 30 days. Ascena Retail Group has a market cap of $1.4 billion and is part of the services sector and retail industry. The stock has a beta of 1.79 and a short float of 13.1% with 7.00 days to cover. Shares are down 27.5% year-to-date as of the close of trading on Friday.
rates Ascena Retail Group as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself 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 Specialty Retail industry. The net income has significantly decreased by 359.8% when compared to the same quarter one year ago, falling from $8.70 million to -$22.60 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 Specialty Retail industry and the overall market, ASCENA RETAIL GROUP INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 52.40%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 340.00% compared to the year-earlier quarter. 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.
- ASCENA RETAIL GROUP INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. 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, ASCENA RETAIL GROUP INC swung to a loss, reporting -$1.46 versus $0.84 in the prior year. This year, the market expects an improvement in earnings ($0.75 versus -$1.46).
- The debt-to-equity ratio is somewhat low, currently at 0.91, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.49 is very weak and demonstrates a lack of ability to pay short-term obligations.
- You can view the full Ascena Retail Group Ratings Report.