Trade-Ideas LLC identified

World Acceptance

(

WRLD

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

  • WRLD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.7 million.
  • WRLD has traded 52,929 shares today.
  • WRLD is trading at 3.41 times the normal volume for the stock at this time of day.
  • WRLD is trading at a new low 16.01% 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 WRLD:

TheStreet Recommends

World Acceptance Corporation engages in small-loan consumer finance business. The company offers short-term small and medium-term larger installment loans, related credit insurance and ancillary products and services to individuals. WRLD has a PE ratio of 3. Currently there are no analysts that rate World Acceptance a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for World Acceptance has been 147,500 shares per day over the past 30 days. World Acceptance has a market cap of $349.0 million and is part of the financial sector and financial services industry. The stock has a beta of 2.76 and a short float of 74.3% with 20.36 days to cover. Shares are up 5.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates World Acceptance as a

hold

. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including poor profit margins, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • WORLD ACCEPTANCE CORP/DE' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, WORLD ACCEPTANCE CORP/DE increased its bottom line by earning $11.97 versus $9.40 in the prior year. For the next year, the market is expecting a contraction of 10.3% in earnings ($10.74 versus $11.97).
  • Net operating cash flow has decreased to $40.62 million or 19.44% when compared to the same quarter last year. Despite a decrease in cash flow WORLD ACCEPTANCE CORP/DE is still fairing well by exceeding its industry average cash flow growth rate of -30.07%.
  • The gross profit margin for WORLD ACCEPTANCE CORP/DE is currently lower than what is desirable, coming in at 27.24%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 14.06% is above that of the industry average.

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