Brown Shoe (BWS) Is Today's Dead Cat Bounce Stock

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 Brown Shoe ( BWS) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Brown Shoe as such a stock due to the following factors:

  • BWS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.2 million.
  • BWS has traded 66,384 shares today.
  • BWS is up 5.5% today.
  • BWS was down 8.8% yesterday.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in BWS with the Ticky from Trade-Ideas. See the FREE profile for BWS NOW at Trade-Ideas

More details on BWS:

Brown Shoe Company, Inc., a footwear company, retails and wholesales footwear worldwide. The company operates through Famous Footwear, Wholesale Operations, Specialty Retail, and Other segments. The stock currently has a dividend yield of 0.9%. BWS has a PE ratio of 18.9. Currently there are 3 analysts that rate Brown Shoe a buy, 1 analyst rates it a sell, and none rate it a hold.

The average volume for Brown Shoe has been 318,700 shares per day over the past 30 days. Brown Shoe has a market cap of $1.4 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.21 and a short float of 4.8% with 4.12 days to cover. Shares are up 11.7% year-to-date as of the close of trading on Thursday.

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 Brown Shoe as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and attractive valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • BROWN SHOE CO INC has improved earnings per share by 21.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BROWN SHOE CO INC increased its bottom line by earning $1.25 versus $0.83 in the prior year. This year, the market expects an improvement in earnings ($1.68 versus $1.25).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Specialty Retail industry average. The net income increased by 21.3% when compared to the same quarter one year prior, going from $27.31 million to $33.11 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.8%. Since the same quarter one year prior, revenues slightly increased by 3.8%. Growth in the company's revenue appears to have helped boost the earnings per share.

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

null

More from Markets

Stocks Trade Lower as Rates Continue Rising; Boeing Holds Gains

Stocks Trade Lower as Rates Continue Rising; Boeing Holds Gains

4 Stocks Making Important Moves Wednesday

4 Stocks Making Important Moves Wednesday

Dow Futures Turn Positive After Boeing Earnings Blowout; Twitter Boosts Nasdaq

Dow Futures Turn Positive After Boeing Earnings Blowout; Twitter Boosts Nasdaq

Facebook, Boeing, Shire and Credit Suisse - 5 Things You Must Know

Facebook, Boeing, Shire and Credit Suisse - 5 Things You Must Know

Facebook Prepares for Earnings and 4 Other Stories You Must Know Wednesday

Facebook Prepares for Earnings and 4 Other Stories You Must Know Wednesday