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 "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified DSW as such a stock due to the following factors:
- DSW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $38.0 million.
- DSW has traded 627,697 shares today.
- DSW is down 3% today.
- DSW was up 7.9% yesterday.
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More details on DSW:
DSW Inc. operates as a branded footwear and accessories specialty retailer in the United States. The company offers fashion, shoes, dress, casual and athletic footwear, and accessories for women and men through its DSW stores and dsw.com. The stock currently has a dividend yield of 1.2%. DSW has a PE ratio of 26.3. Currently there are 2 analysts that rate DSW a buy, no analysts rate it a sell, and 6 rate it a hold.
The average volume for DSW has been 327,100 shares per day over the past 30 days. DSW has a market cap of $3.0 billion and is part of the services sector and retail industry. The stock has a beta of 1.03 and a short float of 4.9% with 2.86 days to cover. Shares are up 33.6% year to date as of the close of trading on Tuesday.
rates DSW as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- DSW's revenue growth trails the industry average of 23.8%. Since the same quarter one year prior, revenues slightly increased by 7.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- DSW 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 1.19, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has increased to $42.31 million or 19.13% when compared to the same quarter last year. Despite an increase in cash flow, DSW INC's cash flow growth rate is still lower than the industry average growth rate of 30.19%.
- 35.89% is the gross profit margin for DSW INC which we consider to be strong. Regardless of DSW's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 5.73% trails the industry average.
- DSW INC's earnings per share declined by 12.8% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, DSW INC reported lower earnings of $3.20 versus $3.43 in the prior year. This year, the market expects an improvement in earnings ($3.70 versus $3.20).
- You can view the full DSW Ratings Report.