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 Outerwall as such a stock due to the following factors:
- OUTR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $33.9 million.
- OUTR has traded 144,620 shares today.
- OUTR is trading at 11.51 times the normal volume for the stock at this time of day.
- OUTR is trading at a new high 9.03% 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 OUTR:
Outerwall Inc., through its subsidiaries, provides automated retail solutions primarily in the United States, Canada, Puerto Rico, Ireland, and the United Kingdom. OUTR has a PE ratio of 8.6. Currently there are 6 analysts that rate Outerwall a buy, 1 analyst rates it a sell, and 3 rate it a hold.
The average volume for Outerwall has been 572,200 shares per day over the past 30 days. Outerwall has a market cap of $1.1 billion and is part of the services sector and specialty retail industry. The stock has a beta of 1.25 and a short float of 44.2% with 12.55 days to cover. Shares are down 15.9% year-to-date as of the close of trading on Thursday.
rates Outerwall as a
. The company's strengths can be seen in multiple areas, such as its notable return on equity and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and poor profit margins.
Highlights from the ratings report include:
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Specialty Retail industry and the overall market, OUTERWALL INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has significantly increased by 113.50% to $63.12 million when compared to the same quarter last year. In addition, OUTERWALL INC has also vastly surpassed the industry average cash flow growth rate of 9.54%.
- OUTR, with its decline in revenue, slightly underperformed the industry average of 1.0%. Since the same quarter one year prior, revenues slightly dropped by 0.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- 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 53.6% when compared to the same quarter one year ago, falling from $46.86 million to $21.75 million.
- The debt-to-equity ratio is very high at 10.40 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, OUTR has a quick ratio of 0.58, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- You can view the full Outerwall Ratings Report.