Trueblue (TBI) 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.

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

  • TBI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.2 million.
  • TBI has traded 151,576 shares today.
  • TBI is trading at 18.16 times the normal volume for the stock at this time of day.
  • TBI is trading at a new high 3.08% 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 TBI with the Ticky from Trade-Ideas. See the FREE profile for TBI NOW at Trade-Ideas

More details on TBI:

TrueBlue, Inc. provides staffing, recruitment process outsourcing, and managed services in the United States, Canada, and Puerto Rico. It operates through two segments, Staffing Services and Managed Services. TBI has a PE ratio of 17. Currently there are 2 analysts that rate Trueblue a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Trueblue has been 296,300 shares per day over the past 30 days. Trueblue has a market cap of $1.2 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.87 and a short float of 2.9% with 6.91 days to cover. Shares are up 31.4% year-to-date as of the close of trading on Thursday.

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 Trueblue as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 1.1%. Since the same quarter one year prior, revenues rose by 44.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • TBI's debt-to-equity ratio is very low at 0.24 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, TBI has a quick ratio of 1.74, which demonstrates the ability of the company to cover short-term liquidity needs.
  • TRUEBLUE INC reported significant earnings per share improvement 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, TRUEBLUE INC increased its bottom line by earning $1.59 versus $1.11 in the prior year. This year, the market expects an improvement in earnings ($1.76 versus $1.59).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Professional Services industry. The net income increased by 245.2% when compared to the same quarter one year prior, rising from $1.66 million to $5.72 million.

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

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%