Trade-Ideas LLC identified

Popeyes Louisiana Kitchen

(

PLKI

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

  • PLKI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.6 million.
  • PLKI has traded 62,771 shares today.
  • PLKI is trading at 12.17 times the normal volume for the stock at this time of day.
  • PLKI is trading at a new high 3.06% 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 PLKI:

TheStreet Recommends

Popeyes Louisiana Kitchen, Inc. develops, operates, and franchises quick-service restaurants. The company operates in two segments, Franchise Operations and Company-Operated Restaurants. PLKI has a PE ratio of 32. Currently there are 3 analysts that rate Popeyes Louisiana Kitchen a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Popeyes Louisiana Kitchen has been 179,800 shares per day over the past 30 days. Popeyes Louisiana Kitchen has a market cap of $1.3 billion and is part of the services sector and leisure industry. The stock has a beta of 0.32 and a short float of 5.2% with 5.74 days to cover. Shares are up 2.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Popeyes Louisiana Kitchen as a

buy

. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, notable return on equity and good cash flow from operations. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • POPEYES LOUISIANA KITCHEN has improved earnings per share by 9.5% 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, POPEYES LOUISIANA KITCHEN increased its bottom line by earning $1.60 versus $1.41 in the prior year. This year, the market expects an improvement in earnings ($1.91 versus $1.60).
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Hotels, Restaurants & Leisure industry average. The net income increased by 8.2% when compared to the same quarter one year prior, going from $9.80 million to $10.60 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 12.2%. Since the same quarter one year prior, revenues rose by 11.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • 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 Hotels, Restaurants & Leisure industry and the overall market, POPEYES LOUISIANA KITCHEN's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to $20.70 million or 26.99% when compared to the same quarter last year. In addition, POPEYES LOUISIANA KITCHEN has also vastly surpassed the industry average cash flow growth rate of -54.62%.

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