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 $4.9 million.
  • TUES has traded 278,263 shares today.
  • TUES is trading at 13.31 times the normal volume for the stock at this time of day.
  • TUES is trading at a new low 14.21% 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:

TheStreet Recommends

Tuesday Morning Corporation operates as a retailer of upscale decorative home accessories, housewares, seasonal goods, and gifts in the United States. The company offers various products, such as home decor, furniture, bed and bath, kitchen, toys, crafts, pets, and seasonal goods. TUES has a PE ratio of 25. Currently there is 1 analyst that rates Tuesday Morning a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Tuesday Morning has been 624,300 shares per day over the past 30 days. Tuesday Morning has a market cap of $267.3 million and is part of the services sector and retail industry. The stock has a beta of 2.10 and a short float of 19.9% with 7.32 days to cover. Shares are down 2% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Tuesday Morning as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:

  • TUES's revenue growth trails the industry average of 15.2%. Since the same quarter one year prior, revenues slightly increased by 0.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • 37.72% 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. Regardless of the strong results of the gross profit margin, the net profit margin of -3.03% trails the industry average.
  • Net operating cash flow has significantly increased by 72.21% to -$10.97 million when compared to the same quarter last year. Despite an increase in cash flow, TUESDAY MORNING CORP's average is still marginally south of the industry average growth rate of 80.64%.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to the other companies in the Multiline Retail industry and the overall market, TUESDAY MORNING CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • TUES's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 71.36%, which is also worse than the performance of the S&P 500 Index. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.

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