Willdan Group (WLDN) Strong On High Relative Volume Today

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 Willdan Group ( WLDN) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Willdan Group as such a stock due to the following factors:

  • WLDN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.7 million.
  • WLDN has traded 57,458 shares today.
  • WLDN is trading at 3.64 times the normal volume for the stock at this time of day.
  • WLDN is trading at a new high 5.21% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 WLDN:

Willdan Group, Inc., together with its subsidiaries, provides professional technical and consulting services to public agencies at various levels of government, public and private utilities, and commercial and industrial firms in the Unites States. WLDN has a PE ratio of 21.9. Currently there are no analysts that rate Willdan Group a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Willdan Group has been 188,300 shares per day over the past 30 days. Willdan Group has a market cap of $103.8 million and is part of the services sector and diversified services industry. The stock has a beta of 1.46 and a short float of 1.8% with 0.25 days to cover. Shares are up 170.6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Willdan Group as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 11.3%. Since the same quarter one year prior, revenues rose by 31.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • WLDN's debt-to-equity ratio is very low at 0.08 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.22, which illustrates the ability to avoid short-term cash problems.
  • 39.57% is the gross profit margin for WILLDAN GROUP INC which we consider to be strong. Regardless of WLDN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, WLDN's net profit margin of 7.01% compares favorably to the industry average.
  • Net operating cash flow has significantly decreased to -$0.31 million or 122.40% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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