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.

Trade-Ideas LLC identified

Tuesday Morning

(

TUES

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

  • TUES has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.5 million.
  • TUES has traded 84,115 shares today.
  • TUES is trading at 4.02 times the normal volume for the stock at this time of day.
  • TUES is trading at a new low 4.05% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 TUES:

Tuesday Morning Corporation operates as a retailer of upscale decorative home accessories, housewares, seasonal goods, and famous-maker gifts in the United States. TUES has a PE ratio of 590.0. Currently there are no analysts that rate Tuesday Morning a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Tuesday Morning has been 499,300 shares per day over the past 30 days. Tuesday Morning has a market cap of $776.0 million and is part of the services sector and retail industry. The stock has a beta of 1.64 and a short float of 34.9% with 23.61 days to cover. Shares are down 24.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Tuesday Morning as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:

  • TUES's revenue growth has slightly outpaced the industry average of 2.6%. Since the same quarter one year prior, revenues slightly increased by 5.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • TUESDAY MORNING CORP has improved earnings per share by 31.7% 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 year. We feel that this trend should continue. During the past fiscal year, TUESDAY MORNING CORP continued to lose money by earning -$0.24 versus -$1.34 in the prior year. This year, the market expects an improvement in earnings ($0.34 versus -$0.24).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Multiline Retail industry. The net income increased by 33.9% when compared to the same quarter one year prior, rising from $17.67 million to $23.66 million.
  • 37.19% is the gross profit margin for TUESDAY MORNING CORP which we consider to be strong. It has increased from the same quarter the previous year.
  • Net operating cash flow has increased to $48.32 million or 13.16% when compared to the same quarter last year. Despite an increase in cash flow, TUESDAY MORNING CORP's cash flow growth rate is still lower than the industry average growth rate of 24.96%.

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