Trade-Ideas LLC identified

Forestar Group

(

FOR

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

  • FOR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.5 million.
  • FOR has traded 54,867 shares today.
  • FOR is trading at 4.89 times the normal volume for the stock at this time of day.
  • FOR is trading at a new high 4.15% 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 FOR with the Ticky from Trade-Ideas. See the FREE profile for FOR NOW at Trade-Ideas

More details on FOR:

Forestar Group Inc. operates as a real estate, and oil and gas company in the United States. It operates through three segments: Real Estate, Oil and Gas, and Other Natural Resources. Currently there are 2 analysts that rate Forestar Group a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Forestar Group has been 300,300 shares per day over the past 30 days. Forestar Group has a market cap of $298.2 million and is part of the financial sector and real estate industry. The stock has a beta of 1.47 and a short float of 28.8% with 22.80 days to cover. Shares are down 20.7% year-to-date as of the close of trading on Friday.

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 Forestar Group as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:

  • FORESTAR GROUP 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, FORESTAR GROUP INC reported lower earnings of $0.31 versus $0.79 in the prior year. For the next year, the market is expecting a contraction of 114.5% in earnings (-$0.05 versus $0.31).
  • 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 Real Estate Management & Development industry. The net income has significantly decreased by 3241.7% when compared to the same quarter one year ago, falling from $5.23 million to -$164.22 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Real Estate Management & Development industry and the overall market, FORESTAR GROUP INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for FORESTAR GROUP INC is currently lower than what is desirable, coming in at 25.46%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -380.41% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to $2.47 million or 85.78% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much 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.