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 Vitamin Shoppe ( VSI) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Vitamin Shoppe as such a stock due to the following factors:
- VSI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $34.0 million.
- VSI has traded 95,279 shares today.
- VSI is up 3% today.
- VSI was down 5.9% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in VSI with the Ticky from Trade-Ideas. See the FREE profile for VSI NOW at Trade-Ideas More details on VSI: Vitamin Shoppe, Inc., through its subsidiaries, operates as a specialty retailer and direct marketer of nutritional products in the United States. The company operates in two segments, Retail and Direct. VSI has a PE ratio of 19.6. Currently there are 6 analysts that rate Vitamin Shoppe a buy, 1 analyst rates it a sell, and 6 rate it a hold. The average volume for Vitamin Shoppe has been 551,000 shares per day over the past 30 days. Vitamin Shoppe has a market cap of $1.3 billion and is part of the services sector and specialty retail industry. The stock has a beta of 0.81 and a short float of 18.5% with 5.32 days to cover. Shares are down 19.9% year-to-date as of the close of trading on Friday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Vitamin Shoppe as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- VSI's revenue growth has slightly outpaced the industry average of 6.8%. Since the same quarter one year prior, revenues rose by 14.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- VITAMIN SHOPPE INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. 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, VITAMIN SHOPPE INC increased its bottom line by earning $2.02 versus $1.52 in the prior year. This year, the market expects an improvement in earnings ($2.28 versus $2.02).
- Looking at the price performance of VSI's shares over the past 12 months, there is not much good news to report: the stock is down 28.58%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it is one of the factors that makes this stock an attractive investment.
- The gross profit margin for VITAMIN SHOPPE INC is currently lower than what is desirable, coming in at 34.15%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 5.97% trails that of the industry average.
- You can view the full Vitamin Shoppe Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.