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 $9.9 million.
  • VGR has traded 525,884 shares today.
  • VGR is trading at 6.23 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, manufactures and sells cigarettes in the United States. It operates through Tobacco, E-Cigarettes, and Real Estate segments. The stock currently has a dividend yield of 7.5%. VGR has a PE ratio of 44. 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 744,700 shares per day over the past 30 days. Vector Group has a market cap of $2.7 billion and is part of the consumer goods sector and tobacco industry. The stock has a beta of 0.44 and a short float of 11.3% with 20.72 days to cover. Shares are down 10.9% year-to-date as of the close of trading on Thursday.

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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, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 8.9%. Since the same quarter one year prior, revenues slightly increased by 4.5%. 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.
  • VECTOR GROUP LTD's earnings per share declined by 42.7% 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 $0.47 versus $0.34 in the prior year. This year, the market expects an improvement in earnings ($0.77 versus $0.47).
  • 41.68% is the gross profit margin for VECTOR GROUP LTD which we consider to be strong. Regardless of VGR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, VGR's net profit margin of 2.52% is significantly lower than the industry average.
  • Net operating cash flow has decreased to $4.46 million or 39.15% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Tobacco industry average. The net income has significantly decreased by 31.8% when compared to the same quarter one year ago, falling from $11.59 million to $7.90 million.

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