Heavy Trading On Pier 1 Imports (PIR) Before Market Open

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 Pier 1 Imports ( PIR) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Pier 1 Imports as such a stock due to the following factors:

  • PIR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $29.5 million.
  • PIR traded 304,173 shares today in the pre-market hours as of 8:41 AM, representing 14.3% of its average daily volume.

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More details on PIR:

Pier 1 Imports, Inc. is engaged in the retail sale of decorative home furnishings, furniture, gifts, and related products. The stock currently has a dividend yield of 1.6%. PIR has a PE ratio of 15.2. Currently there are 9 analysts that rate Pier 1 Imports a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Pier 1 Imports has been 1.6 million shares per day over the past 30 days. Pier 1 Imports has a market cap of $1.4 billion and is part of the services sector and retail industry. The stock has a beta of 1.51 and a short float of 6.1% with 2.76 days to cover. Shares are down 33.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Pier 1 Imports as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • PIR's revenue growth has slightly outpaced the industry average of 0.0%. Since the same quarter one year prior, revenues slightly increased by 6.1%. 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.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Specialty Retail industry and the overall market, PIER 1 IMPORTS INC/DE's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • 40.02% is the gross profit margin for PIER 1 IMPORTS INC/DE which we consider to be strong. Regardless of PIR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 3.59% trails the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Specialty Retail industry. The net income has significantly decreased by 26.0% when compared to the same quarter one year ago, falling from $20.35 million to $15.06 million.
  • Net operating cash flow has decreased to $27.13 million or 30.49% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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