Trade-Ideas LLC identified

Movado Group

(

MOV

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

  • MOV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.0 million.
  • MOV has traded 129,009 shares today.
  • MOV is trading at 24.57 times the normal volume for the stock at this time of day.
  • MOV is trading at a new low 9.03% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in MOV with the Ticky from Trade-Ideas. See the FREE profile for MOV NOW at Trade-Ideas

More details on MOV:

Movado Group, Inc. designs, sources, markets, and distributes fine watches in the United States and internationally. The company operates in two segments, Wholesale and Retail. The stock currently has a dividend yield of 1.4%. MOV has a PE ratio of 16. Currently there are no analysts that rate Movado Group a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Movado Group has been 140,000 shares per day over the past 30 days. Movado Group has a market cap of $701.0 million and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 0.11 and a short float of 10.8% with 14.44 days to cover. Shares are up 18% year-to-date as of the close of trading on Wednesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Movado Group as a

hold

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that net income has been generally deteriorating over time.

Highlights from the ratings report include:

  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • MOVADO GROUP INC has improved earnings per share by 5.7% 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 year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, MOVADO GROUP INC increased its bottom line by earning $2.03 versus $1.97 in the prior year. This year, the market expects an improvement in earnings ($2.06 versus $2.03).
  • MOV, with its decline in revenue, underperformed when compared the industry average of 18.2%. Since the same quarter one year prior, revenues slightly dropped by 1.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Textiles, Apparel & Luxury Goods industry and the overall market, MOVADO GROUP INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Textiles, Apparel & Luxury Goods industry average, but is greater than that of the S&P 500. The net income has decreased by 3.0% when compared to the same quarter one year ago, dropping from $22.21 million to $21.53 million.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.