Career Education (CECO) 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.

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

  • CECO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.7 million.
  • CECO has traded 191,701 shares today.
  • CECO is trading at 8.42 times the normal volume for the stock at this time of day.
  • CECO is trading at a new high 13.17% 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.

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

More details on CECO:

Career Education Corporation operates colleges, institutions, and universities that provide education to student population in various career-oriented disciplines through online, on-ground, and hybrid learning program offerings in the United States. Currently there are no analysts that rate Career Education a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Career Education has been 609,600 shares per day over the past 30 days. Career has a market cap of $282.0 million and is part of the services sector and diversified services industry. The stock has a beta of 2.72 and a short float of 5.7% with 5.41 days to cover. Shares are down 40.1% year-to-date as of the close of trading on Wednesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Career Education as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Diversified Consumer Services industry and the overall market, CAREER EDUCATION CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • CECO's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 41.83%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Diversified Consumer Services industry average, but is greater than that of the S&P 500. The net income increased by 16.7% when compared to the same quarter one year prior, going from -$30.61 million to -$25.49 million.
  • CECO, with its decline in revenue, underperformed when compared the industry average of 10.5%. Since the same quarter one year prior, revenues fell by 12.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The gross profit margin for CAREER EDUCATION CORP is rather high; currently it is at 65.92%. Regardless of CECO's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CECO's net profit margin of -14.63% significantly underperformed when compared to the industry average.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

3 Hot Reads From TheStreet's Top Premium Columnists

3 Hot Reads From TheStreet's Top Premium Columnists