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.

Trade-Ideas LLC identified

World Wrestling Entertainment

(

WWE

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

  • WWE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.3 million.
  • WWE has traded 93,286 shares today.
  • WWE is trading at 3.80 times the normal volume for the stock at this time of day.
  • WWE is trading at a new high 3.27% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 WWE:

World Wrestling Entertainment, Inc., an integrated media and entertainment company, engages in the sports entertainment business in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The stock currently has a dividend yield of 2.9%. Currently there are 3 analysts that rate World Wrestling Entertainment a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for World Wrestling Entertainment has been 726,100 shares per day over the past 30 days. World Wrestling Entertainment has a market cap of $543.3 million and is part of the services sector and media industry. The stock has a beta of 0.57 and a short float of 15.8% with 8.34 days to cover. Shares are up 33.9% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates World Wrestling Entertainment as a

hold

. 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 and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 7.7%. Since the same quarter one year prior, revenues rose by 18.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • WWE's debt-to-equity ratio is very low at 0.13 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, WWE has a quick ratio of 1.55, which demonstrates the ability of the company to cover short-term liquidity needs.
  • WORLD WRESTLING ENTMT INC reported significant earnings per share improvement 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, WORLD WRESTLING ENTMT INC swung to a loss, reporting -$0.40 versus $0.04 in the prior year. This year, the market expects an improvement in earnings ($0.34 versus -$0.40).
  • The gross profit margin for WORLD WRESTLING ENTMT INC is currently lower than what is desirable, coming in at 32.47%. Regardless of WWE's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, WWE's net profit margin of -1.15% significantly underperformed when compared to the industry average.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Media industry and the overall market, WORLD WRESTLING ENTMT INC's return on equity significantly trails that of both the industry average and the S&P 500.

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