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

  • EXPR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $54.4 million.
  • EXPR has traded 1.9 million shares today.
  • EXPR is trading at 3.01 times the normal volume for the stock at this time of day.
  • EXPR is trading at a new low 3.01% 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 EXPR:

Express, Inc. operates as a specialty apparel and accessories retailer. It offers apparel and accessories for women and men between 20 and 30 years across various aspects of lifestyles, including work, casual, jeanswear, and going-out occasions. EXPR has a PE ratio of 19. Currently there are 5 analysts that rate Express a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Express has been 1.6 million shares per day over the past 30 days. Express has a market cap of $1.4 billion and is part of the services sector and retail industry. The stock has a beta of 1.71 and a short float of 7.1% with 2.50 days to cover. Shares are up 37.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Express as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and revenue growth. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Specialty Retail industry. The net income increased by 157.0% when compared to the same quarter one year prior, rising from $5.08 million to $13.06 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 10.5%. Since the same quarter one year prior, revenues slightly increased by 9.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • EXPRESS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, EXPRESS INC reported lower earnings of $0.80 versus $1.38 in the prior year. This year, the market expects an improvement in earnings ($1.21 versus $0.80).
  • EXPR's debt-to-equity ratio is very low at 0.12 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Despite the fact that EXPR's debt-to-equity ratio is low, the quick ratio, which is currently 0.53, displays a potential problem in covering short-term cash needs.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Specialty Retail industry and the overall market, EXPRESS INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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