Jones Group (JNY): Heavy Pre-Market Activity

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 Jones Group ( JNY) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Jones Group as such a stock due to the following factors:

  • JNY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $23.9 million.
  • JNY traded 386,600 shares today in the pre-market hours as of 7:53 AM, representing 24% of its average daily volume.

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More details on JNY:

The Jones Group Inc. engages in the design, marketing, and wholesale of apparel, footwear, jeanswear, jewelry, and handbags. The stock currently has a dividend yield of 1.4%. Currently there is 1 analyst that rates Jones Group a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Jones Group has been 1.1 million shares per day over the past 30 days. Jones Group has a market cap of $1.2 billion and is part of the services sector and retail industry. The stock has a beta of 1.99 and a short float of 6.8% with 3.02 days to cover. Shares are up 30.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Jones Group as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and generally higher debt management risk.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry. The net income increased by 68.4% when compared to the same quarter one year prior, rising from $17.40 million to $29.30 million.
  • The strong earnings growth this company has enjoyed -- up -- has apparently played a role in driving up its share price by a solid 28.76%. In addition, the rise in the general market has likely contributed to this stock's strong performance during this past year.Although JNY had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
  • JONES GROUP 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, JONES GROUP INC swung to a loss, reporting -$0.74 versus $0.58 in the prior year. This year, the market expects an improvement in earnings ($0.77 versus -$0.74).
  • The debt-to-equity ratio of 1.01 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, JNY's quick ratio is somewhat strong at 1.00, demonstrating the ability to handle short-term liquidity needs.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Textiles, Apparel & Luxury Goods industry and the overall market, JONES GROUP INC's return on equity significantly trails that of both the industry average and the S&P 500.

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