Skip to main content

Trade-Ideas LLC identified

Buckle

(

BKE

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

  • BKE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.4 million.
  • BKE has traded 67,287 shares today.
  • BKE is trading at 2.71 times the normal volume for the stock at this time of day.
  • BKE is trading at a new low 3.11% 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 BKE with the Ticky from Trade-Ideas. See the FREE profile for BKE NOW at Trade-Ideas

More details on BKE:

Scroll to Continue

TheStreet Recommends

The Buckle, Inc. operates as a retailer of casual apparel, footwear, and accessories for young men and women in the United States. It markets a selection of brand name casual apparel, including denims, other casual bottoms, tops, sportswear, outerwear, accessories, and footwear. The stock currently has a dividend yield of 3.1%. BKE has a PE ratio of 1. Currently there are no analysts that rate Buckle a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Buckle has been 492,800 shares per day over the past 30 days. Buckle has a market cap of $1.5 billion and is part of the services sector and retail industry. The stock has a beta of 0.68 and a short float of 35.5% with 22.85 days to cover. Shares are up 4.5% 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 Buckle as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, feeble growth in the company's earnings per share and deteriorating net income.

Highlights from the ratings report include:

  • BKE has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.50, which illustrates the ability to avoid short-term cash problems.
  • 44.63% is the gross profit margin for BUCKLE INC which we consider to be strong. Regardless of BKE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BKE's net profit margin of 12.81% compares favorably to the industry average.
  • BUCKLE INC's earnings per share declined by 11.9% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has managed its earnings and share float. We anticipate this stability to falter in the coming year and, in turn, the company to deliver lower earnings per share than prior full year. During the past fiscal year, BUCKLE INC's EPS of $3.38 remained unchanged from the prior years' EPS of $3.38. For the next year, the market is expecting a contraction of 10.8% in earnings ($3.02 versus $3.38).
  • Net operating cash flow has significantly decreased to $22.83 million or 50.36% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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.