NEW YORK (TheStreet) -- Shares of WOLVERINE WORLD WIDE (WWW) are down today by $2.46 (8.78%) as of 2:51:43 PM. Thus far, 2.67 million shares of WOLVERINE WORLD WIDE changed hands as compared to its average daily volume of 865.60K shares. The stock has ranged in price between $25.30 and $27.00 after opening the day at $26.81 as compared to the previous trading day's close of $28.02. Overall, WOLVERINE WORLD WIDE is lagging the S&P 500 which is up 0.14%. Important items of note for WOLVERINE WORLD WIDE and possible rationale for parts of today's stock move go as follows:
TheStreet Ratings team rates WOLVERINE WORLD WIDE as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate WOLVERINE WORLD WIDE (WWW) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- WWW's very impressive revenue growth greatly exceeded the industry average of 16.6%. Since the same quarter one year prior, revenues leaped by 103.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 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 66.2% when compared to the same quarter one year prior, rising from $32.73 million to $54.40 million.
- Net operating cash flow has significantly increased by 650.55% to $37.90 million when compared to the same quarter last year. In addition, WOLVERINE WORLD WIDE has also vastly surpassed the industry average cash flow growth rate of -26.98%.
- 41.50% is the gross profit margin for WOLVERINE WORLD WIDE which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 7.59% trails the industry average.
- Powered by its strong earnings growth of 63.63% and other important driving factors, this stock has surged by 31.20% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full analysis from the report here: WWW Ratings Report