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 weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Wyndham Worldwide as such a stock due to the following factors:
- WYN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $64.4 million.
- WYN has traded 375,141 shares today.
- WYN is trading at 10.10 times the normal volume for the stock at this time of day.
- WYN is trading at a new low 4.02% 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 WYN:
Wyndham Worldwide Corporation provides various hospitality services and products to individual and business customers in the United States, the United Kingdom, the Netherlands, and internationally. The stock currently has a dividend yield of 1.6%. WYN has a PE ratio of 20.5. Currently there are 5 analysts that rate Wyndham Worldwide a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Wyndham Worldwide has been 909,700 shares per day over the past 30 days. Wyndham Worldwide has a market cap of $10.5 billion and is part of the services sector and leisure industry. Shares are down 2.3% year-to-date as of the close of trading on Friday.
rates Wyndham Worldwide as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, increase in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 10.8%. Since the same quarter one year prior, revenues slightly increased by 6.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- WYNDHAM WORLDWIDE CORP has improved earnings per share by 17.1% 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 two years. We feel that this trend should continue. During the past fiscal year, WYNDHAM WORLDWIDE CORP increased its bottom line by earning $3.22 versus $2.77 in the prior year. This year, the market expects an improvement in earnings ($4.47 versus $3.22).
- The net income growth from the same quarter one year ago has significantly exceeded that of the Hotels, Restaurants & Leisure industry average, but is less than that of the S&P 500. The net income increased by 10.2% when compared to the same quarter one year prior, going from $186.00 million to $205.00 million.
- You can view the full Wyndham Worldwide Ratings Report.