Trade-Ideas LLC identified Mattress Firm ( MFRM) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Mattress Firm as such a stock due to the following factors:

  • MFRM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.9 million.
  • MFRM traded 52,082 shares today in the pre-market hours as of 9:06 AM, representing 23.6% of its average daily volume.

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More details on MFRM:

Mattress Firm Holding Corp., through its subsidiaries, operates as a specialty retailer of mattresses, and related products and accessories in the United States. It operates in two segments, Retail Operations and Franchise Operations. The company also operates an e-commerce Website. MFRM has a PE ratio of 45. Currently there are 3 analysts that rate Mattress Firm a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Mattress Firm has been 374,300 shares per day over the past 30 days. Mattress Firm has a market cap of $1.8 billion and is part of the services sector and specialty retail industry. The stock has a beta of 1.22 and a short float of 21.5% with 18.31 days to cover. Shares are down 12.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Mattress Firm as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, good cash flow from operations, growth in earnings per share and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • MFRM's very impressive revenue growth greatly exceeded the industry average of 4.5%. Since the same quarter one year prior, revenues leaped by 61.1%. 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 Specialty Retail industry. The net income increased by 53.0% when compared to the same quarter one year prior, rising from $14.30 million to $21.88 million.
  • Net operating cash flow has significantly increased by 74.72% to $89.36 million when compared to the same quarter last year. In addition, MATTRESS FIRM HOLDING CORP has also vastly surpassed the industry average cash flow growth rate of 4.59%.
  • MATTRESS FIRM HOLDING CORP has improved earnings per share by 48.8% 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, MATTRESS FIRM HOLDING CORP reported lower earnings of $1.27 versus $1.54 in the prior year. This year, the market expects an improvement in earnings ($2.39 versus $1.27).
  • 41.30% is the gross profit margin for MATTRESS FIRM HOLDING CORP which we consider to be strong. Regardless of MFRM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 3.30% trails the industry average.

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