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

Orbitz Worldwide

(

OWW

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

  • OWW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.5 million.
  • OWW has traded 220,134 shares today.
  • OWW is trading at 4.92 times the normal volume for the stock at this time of day.
  • OWW is trading at a new low 3.02% 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 OWW:

Orbitz Worldwide, Inc. operates as an online travel company worldwide. It enables leisure and business travelers to research, plan, and book a range of travel products and services. OWW has a PE ratio of 55.1. Currently there are 5 analysts that rate Orbitz Worldwide a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Orbitz Worldwide has been 1.8 million shares per day over the past 30 days. Orbitz Worldwide has a market cap of $910.6 million and is part of the services sector and leisure industry. The stock has a beta of -0.72 and a short float of 14.3% with 3.97 days to cover. Shares are up 15% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Orbitz Worldwide as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and generally higher debt management risk.

Highlights from the ratings report include:

  • OWW's revenue growth has slightly outpaced the industry average of 1.0%. Since the same quarter one year prior, revenues slightly increased by 9.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Internet & Catalog Retail industry and the overall market, ORBITZ WORLDWIDE INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for ORBITZ WORLDWIDE INC is currently very high, coming in at 80.80%. Regardless of OWW's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, OWW's net profit margin of 2.77% compares favorably to the industry average.
  • This stock has managed to decline in share value by 4.94% over the past twelve months. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
  • The debt-to-equity ratio is very high at 13.21 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, OWW has a quick ratio of 0.53, this demonstrates the lack of ability of the company to cover short-term liquidity needs.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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