Trade-Ideas LLC identified

Vector Group

(

VGR

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

  • VGR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.0 million.
  • VGR has traded 159,103 shares today.
  • VGR is trading at 4.67 times the normal volume for the stock at this time of day.
  • VGR is trading at a new low 3.03% 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 VGR:

Vector Group Ltd., through its subsidiaries, primarily manufactures and sells cigarettes in the United States. The company operates through Tobacco, E-Cigarettes, and Real Estate segments. The stock currently has a dividend yield of 6.4%. VGR has a PE ratio of 48. Currently there is 1 analyst that rates Vector Group a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Vector Group has been 603,100 shares per day over the past 30 days. Vector Group has a market cap of $3.0 billion and is part of the consumer goods sector and tobacco industry. The stock has a beta of 0.46 and a short float of 10.1% with 17.16 days to cover. Shares are up 14.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Vector Group as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we find that net income has been generally deteriorating over time.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 14.5%. Since the same quarter one year prior, revenues rose by 10.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has increased to $56.13 million or 21.89% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -5.05%.
  • VECTOR GROUP LTD's earnings per share declined by 25.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, VECTOR GROUP LTD increased its bottom line by earning $0.34 versus $0.30 in the prior year. This year, the market expects an improvement in earnings ($0.64 versus $0.34).
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry, implying reduced upside potential.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Tobacco industry average, but is greater than that of the S&P 500. The net income has decreased by 18.0% when compared to the same quarter one year ago, dropping from $14.88 million to $12.21 million.

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