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 or Stephanie Link.
Trade-Ideas LLC identified
) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Vitamin Shoppe as such a stock due to the following factors:
- VSI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $59.5 million.
- VSI has traded 629,681 shares today.
- VSI is trading at 2.27 times the normal volume for the stock at this time of day.
- VSI crossed above its 200-day simple moving average.
'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. 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 on. 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 VSI:
Vitamin Shoppe, Inc., through its subsidiaries, operates as a specialty retailer and direct marketer of nutritional products in the United States. The company operates in two segments, Retail and Direct. VSI has a PE ratio of 19.8. Currently there are 6 analysts that rate Vitamin Shoppe a buy, 1 analyst rates it a sell, and 6 rate it a hold.
The average volume for Vitamin Shoppe has been 596,600 shares per day over the past 30 days. Vitamin Shoppe has a market cap of $1.3 billion and is part of the services sector and specialty retail industry. The stock has a beta of 0.81 and a short float of 18.5% with 3.29 days to cover. Shares are down 19.3% year-to-date as of the close of trading on Tuesday.
rates Vitamin Shoppe as a
. Among the primary strengths of the company is its revenue growth. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- VSI's revenue growth has slightly outpaced the industry average of 6.8%. Since the same quarter one year prior, revenues rose by 14.0%. 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.
- VITAMIN SHOPPE INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. 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, VITAMIN SHOPPE INC increased its bottom line by earning $2.02 versus $1.52 in the prior year. This year, the market expects an improvement in earnings ($2.29 versus $2.02).
- Looking at the price performance of VSI's shares over the past 12 months, there is not much good news to report: the stock is down 34.32%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it is one of the factors that makes this stock an attractive investment.
- 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 Specialty Retail industry average. The net income has decreased by 0.1% when compared to the same quarter one year ago, dropping from $16.29 million to $16.27 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Specialty Retail industry and the overall market, VITAMIN SHOPPE INC's return on equity is below that of both the industry average and the S&P 500.
- You can view the full Vitamin Shoppe Ratings Report.