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

  • NYNY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.1 million.
  • NYNY has traded 81,344 shares today.
  • NYNY is trading at 12.05 times the normal volume for the stock at this time of day.
  • NYNY is trading at a new high 13.18% 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 NYNY:

Empire Resorts, Inc., through its subsidiaries, is engaged in hospitality and gaming industries in New York.

The average volume for Empire Resorts has been 133,700 shares per day over the past 30 days. Empire has a market cap of $293.1 million and is part of the services sector and leisure industry. The stock has a beta of 1.39 and a short float of 13.5% with 5.31 days to cover. Shares are up 64.7% year-to-date as of the close of trading on Tuesday.

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 Empire Resorts as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and poor profit margins.

Highlights from the ratings report include:
  • EMPIRE RESORTS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, EMPIRE RESORTS INC reported poor results of -$0.70 versus -$0.07 in the prior year.
  • 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 Hotels, Restaurants & Leisure industry. The net income has significantly decreased by 552.5% when compared to the same quarter one year ago, falling from -$0.74 million to -$4.85 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, EMPIRE RESORTS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$5.19 million or 1163.26% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for EMPIRE RESORTS INC is rather low; currently it is at 20.05%. Regardless of NYNY's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, NYNY's net profit margin of -25.82% significantly underperformed when compared to the industry average.

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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