Lands' End (LE) Weak 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.

Trade-Ideas LLC identified Lands' End ( LE) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Lands' End as such a stock due to the following factors:

  • LE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.7 million.
  • LE has traded 364,786 shares today.
  • LE is trading at 26.75 times the normal volume for the stock at this time of day.
  • LE is trading at a new low 9.02% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 LE:

Lands' End, Inc. operates as a multi-channel retailer in the United States and internationally. The company operates through two segments, Direct and Retail. It offers casual clothing, accessories, footwear, and home products. LE has a PE ratio of 12. Currently there is 1 analyst that rates Lands' End a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Lands' End has been 265,100 shares per day over the past 30 days. Lands' End has a market cap of $912.4 million and is part of the services sector and retail industry. Shares are down 47.1% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Lands' End as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and feeble growth in the company's earnings per share.

Highlights from the ratings report include:
  • Compared to other companies in the Internet & Catalog Retail industry and the overall market, LANDS' END INC's return on equity exceeds that of both the industry average and the S&P 500.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
  • The change in net income from the same quarter one year ago has exceeded that of the Internet & Catalog Retail industry average, but is less than that of the S&P 500. The net income has significantly decreased by 28.0% when compared to the same quarter one year ago, falling from $45.94 million to $33.10 million.
  • The debt-to-equity ratio of 1.26 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, LE's quick ratio is somewhat strong at 1.06, demonstrating the ability to handle short-term liquidity needs.

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