Trade-Ideas LLC identified

Gildan Activewear

(

GIL

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Gildan Activewear as such a stock due to the following factors:

  • GIL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.3 million.
  • GIL has traded 352,573 shares today.
  • GIL is trading at 8.15 times the normal volume for the stock at this time of day.
  • GIL is trading at a new high 3.05% 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 GIL:

Gildan Activewear Inc. manufactures and sells apparel products in the United States, Canada, Europe, the Asia-Pacific, and Latin America. . It operates in two segments, Printwear and Branded Apparel. The stock currently has a dividend yield of 0.9%. GIL has a PE ratio of 29. Currently there are 9 analysts that rate Gildan Activewear a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Gildan Activewear has been 496,500 shares per day over the past 30 days. Gildan Activewear has a market cap of $6.8 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.39 and a short float of 3.7% with 7.85 days to cover. Shares are down 2.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Gildan Activewear as a

buy

. 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, reasonable valuation levels and good cash flow from operations. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • GIL's revenue growth trails the industry average of 15.9%. Since the same quarter one year prior, revenues slightly increased by 2.9%. 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.
  • Although GIL's debt-to-equity ratio of 0.29 is very low, it is currently higher than that of the industry average. To add to this, GIL has a quick ratio of 1.80, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has slightly increased to $85.21 million or 1.04% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -24.28%.
  • GILDAN ACTIVEWEAR INC's earnings per share declined by 12.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GILDAN ACTIVEWEAR INC increased its bottom line by earning $1.46 versus $1.31 in the prior year. This year, the market expects an improvement in earnings ($1.50 versus $1.46).

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