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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

Elizabeth Arden

(

RDEN

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Elizabeth Arden as such a stock due to the following factors:

  • RDEN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.2 million.
  • RDEN has traded 855,769 shares today.
  • RDEN is up 3.2% today.
  • RDEN was down 23.3% yesterday.

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More details on RDEN:

Elizabeth Arden, Inc., a beauty products company, engages in the manufacture, distribution, marketing, and sale of fragrances, skin care, and cosmetic products worldwide. RDEN has a PE ratio of 115.3. Currently there is 1 analyst that rates Elizabeth Arden a buy, 1 analyst rates it a sell, and 4 rate it a hold.

TheStreet Recommends

The average volume for Elizabeth Arden has been 458,400 shares per day over the past 30 days. Elizabeth Arden has a market cap of $582.6 million and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.18 and a short float of 7.7% with 1.94 days to cover. Shares are down 57.5% year-to-date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Elizabeth Arden 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 and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

Highlights from the ratings report include:

  • RDEN, with its decline in revenue, underperformed when compared the industry average of 4.3%. Since the same quarter one year prior, revenues fell by 20.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • RDEN's debt-to-equity ratio of 0.81 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.08 is sturdy.
  • ELIZABETH ARDEN INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, ELIZABETH ARDEN INC reported lower earnings of $1.33 versus $1.92 in the prior year. For the next year, the market is expecting a contraction of 91.7% in earnings ($0.11 versus $1.33).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Personal Products industry. The net income has significantly decreased by 1977.2% when compared to the same quarter one year ago, falling from -$1.27 million to -$26.44 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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