Trade-Ideas: Build-A-Bear Workshop (BBW) Is Today's Strong On High Relative Volume Stock - TheStreet

Trade-Ideas LLC identified

Build-A-Bear Workshop

(

BBW

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

  • BBW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.4 million.
  • BBW has traded 64,433 shares today.
  • BBW is trading at 5.55 times the normal volume for the stock at this time of day.
  • BBW is trading at a new high 4.14% 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 BBW:

Build-A-Bear Workshop, Inc. operates as a specialty retailer of plush animals and related products. It operates in three segments: Retail, International Franchising, and Commercial. BBW has a PE ratio of 17. Currently there are 3 analysts that rate Build-A-Bear Workshop a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Build-A-Bear Workshop has been 201,100 shares per day over the past 30 days. Build-A-Bear Workshop has a market cap of $304.4 million and is part of the services sector and specialty retail industry. The stock has a beta of 1.16 and a short float of 5.3% with 2.57 days to cover. Shares are down 29.1% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Build-A-Bear Workshop as a

hold

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

Highlights from the ratings report include:

  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
  • BUILD-A-BEAR WORKSHOP INC reported significant earnings per share improvement 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. This trend suggests that the performance of the business is improving. During the past fiscal year, BUILD-A-BEAR WORKSHOP INC turned its bottom line around by earning $0.81 versus -$0.15 in the prior year. This year, the market expects an improvement in earnings ($1.52 versus $0.81).
  • BBW 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. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.73 is somewhat weak and could be cause for future problems.
  • 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 on the basis of return on equity, BUILD-A-BEAR WORKSHOP INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • Net operating cash flow has significantly decreased to -$3.86 million or 482.83% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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