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 $5.0 million.
  • TUES has traded 94,441 shares today.
  • TUES is trading at 2.27 times the normal volume for the stock at this time of day.
  • TUES is trading at a new low 8.11% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in TUES with the Ticky from Trade-Ideas. See the FREE profile for TUES NOW at Trade-Ideas

More details on TUES:

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 32. Currently there is 1 analyst that rates Tuesday Morning a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Tuesday Morning has been 860,900 shares per day over the past 30 days. Tuesday Morning has a market cap of $342.3 million and is part of the services sector and retail industry. The stock has a beta of 2.42 and a short float of 22.3% with 11.90 days to cover. Shares are down 63.6% 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 Tuesday Morning as a

hold

. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, revenue growth and largely solid financial position with reasonable debt levels by most measures. 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:

  • TUESDAY MORNING CORP has improved earnings per share by 41.2% 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 two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, TUESDAY MORNING CORP turned its bottom line around by earning $0.24 versus -$0.24 in the prior year. This year, the market expects an improvement in earnings ($0.33 versus $0.24).
  • Despite its growing revenue, the company underperformed as compared with the industry average of 7.4%. Since the same quarter one year prior, revenues slightly increased by 0.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • TUES 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. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.40 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Multiline Retail industry average, but is greater than that of the S&P 500. The net income increased by 42.8% when compared to the same quarter one year prior, rising from -$7.41 million to -$4.24 million.
  • 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 58.50%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. 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.

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.