Pier 1 Imports (PIR) Is Strong On High 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 Pier 1 Imports ( PIR) as a strong on high relative 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 $41.7 million.
  • PIR has traded 1.1 million shares today.
  • PIR is trading at 29.99 times the normal volume for the stock at this time of day.
  • PIR is trading at a new high 11.01% 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 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 1.7%. PIR has a PE ratio of 15.0. Currently there are 3 analysts that rate Pier 1 Imports a buy, 1 analyst rates it a sell, and 9 rate it a hold.

The average volume for Pier 1 Imports has been 2.2 million shares per day over the past 30 days. Pier 1 Imports has a market cap of $1.3 billion and is part of the services sector and retail industry. The stock has a beta of 1.53 and a short float of 8.8% with 2.99 days to cover. Shares are down 39.7% year-to-date as of the close of trading on Wednesday.

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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, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.7%. Since the same quarter one year prior, revenues slightly increased by 5.8%. 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 debt-to-equity ratio is somewhat low, currently at 0.64, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.24 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • 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 48.6% when compared to the same quarter one year ago, falling from $17.83 million to $9.16 million.
  • Net operating cash flow has significantly decreased to -$97.70 million or 97.46% 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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