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 Companhia Brasileira De Distribuicao as such a stock due to the following factors:
- CBD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $29.5 million.
- CBD has traded 61,273 shares today.
- CBD is trading at 2.56 times the normal volume for the stock at this time of day.
- CBD is trading at a new high 3.02% 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.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in CBD with the Ticky from Trade-Ideas. See the FREE profile for CBD NOW at Trade-Ideas
More details on CBD:
Companhia Brasileira de Distribuicao is engaged in the retail of food, clothing, home appliances, electronics, and other products in Brazil. It operates in four segments: Retail, Home appliances, Cash & Carry, and E-commerce. The stock currently has a dividend yield of 0.5%. CBD has a PE ratio of 24.1. Currently there is 1 analyst that rates Companhia Brasileira De Distribuicao a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Companhia Brasileira De Distribuicao has been 545,700 shares per day over the past 30 days. Companhia Brasileira De Distribuicao has a market cap of $10.7 billion and is part of the services sector and retail industry. Shares are down 12.7% year-to-date as of the close of trading on Thursday.
rates Companhia Brasileira De Distribuicao as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, poor profit margins and generally higher debt management risk.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 2.9%. Since the same quarter one year prior, revenues rose by 27.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food & Staples Retailing industry. The net income increased by 1195.0% when compared to the same quarter one year prior, rising from $9.46 million to $122.54 million.
- CIA BRASILEIRA DE DISTRIB reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CIA BRASILEIRA DE DISTRIB reported lower earnings of $1.75 versus $2.01 in the prior year. This year, the market expects an improvement in earnings ($2.48 versus $1.75).
- CBD has underperformed the S&P 500 Index, declining 16.58% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
- The gross profit margin for CIA BRASILEIRA DE DISTRIB is currently lower than what is desirable, coming in at 26.11%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.73% trails that of the industry average.
- You can view the full Companhia Brasileira De Distribuicao Ratings Report.