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

  • RGC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.1 million.
  • RGC has traded 102,886 shares today.
  • RGC is trading at 3.49 times the normal volume for the stock at this time of day.
  • RGC is trading at a new high 4.02% 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.

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More details on RGC:

Regal Entertainment Group, through its subsidiaries, operates as a motion picture exhibitor in the United States. It develops, acquires, and operates multi-screen theatres primarily in mid-sized metropolitan markets and suburban growth areas of larger metropolitan markets. The stock currently has a dividend yield of 4.6%. RGC has a PE ratio of 2. Currently there are 9 analysts that rate Regal Entertainment Group a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for Regal Entertainment Group has been 1.1 million shares per day over the past 30 days. Regal Entertainment Group has a market cap of $2.5 billion and is part of the services sector and media industry. The stock has a beta of 1.09 and a short float of 21.6% with 20.83 days to cover. Shares are down 12.7% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Regal Entertainment Group as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and increase in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and poor profit margins.

Highlights from the ratings report include:
  • RGC's revenue growth has slightly outpaced the industry average of 6.8%. Since the same quarter one year prior, revenues rose by 12.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 58.0% when compared to the same quarter one year prior, rising from $33.80 million to $53.40 million.
  • REGAL ENTERTAINMENT GROUP 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, REGAL ENTERTAINMENT GROUP reported lower earnings of $0.68 versus $1.00 in the prior year. This year, the market expects an improvement in earnings ($1.06 versus $0.68).
  • The gross profit margin for REGAL ENTERTAINMENT GROUP is rather low; currently it is at 22.30%. Regardless of RGC's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 6.18% trails the industry average.
  • In its most recent trading session, RGC has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

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