Weak On High Volume: Zagg (ZAGG) - TheStreet

Trade-Ideas LLC identified

Zagg

(

ZAGG

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

  • ZAGG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.0 million.
  • ZAGG has traded 103,565 shares today.
  • ZAGG is trading at 5.21 times the normal volume for the stock at this time of day.
  • ZAGG is trading at a new low 6.06% 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 ZAGG:

ZAGG Inc, together with its subsidiaries, designs, produces, and distributes mobile accessory solutions. ZAGG has a PE ratio of 13. Currently there are 3 analysts that rate Zagg a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Zagg has been 377,900 shares per day over the past 30 days. Zagg has a market cap of $287.7 million and is part of the services sector and specialty retail industry. The stock has a beta of 1.24 and a short float of 10.2% with 5.41 days to cover. Shares are up 53.2% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Zagg as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:

  • ZAGG's revenue growth has slightly outpaced the industry average of 9.5%. Since the same quarter one year prior, revenues rose by 11.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • ZAGG 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. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.35, which illustrates the ability to avoid short-term cash problems.
  • Powered by its strong earnings growth of 192.85% and other important driving factors, this stock has surged by 62.65% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, ZAGG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • ZAGG INC reported significant earnings per share improvement 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 year. We feel that this trend should continue. During the past fiscal year, ZAGG INC increased its bottom line by earning $0.35 versus $0.15 in the prior year. This year, the market expects an improvement in earnings ($0.60 versus $0.35).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Household Durables industry. The net income increased by 186.6% when compared to the same quarter one year prior, rising from -$4.32 million to $3.74 million.

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