Trade-Ideas LLC identified Big 5 Sporting Goods ( BGFV) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Big 5 Sporting Goods as such a stock due to the following factors:

  • BGFV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.0 million.
  • BGFV has traded 137,385 shares today.
  • BGFV is trading at 10.78 times the normal volume for the stock at this time of day.
  • BGFV is trading at a new high 11.17% 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 BGFV:

Big 5 Sporting Goods Corporation operates as a sporting goods retailer in the western United States. The stock currently has a dividend yield of 3.7%. BGFV has a PE ratio of 17. Currently there are no analysts that rate Big 5 Sporting Goods a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Big 5 Sporting Goods has been 247,800 shares per day over the past 30 days. Big 5 Sporting Goods has a market cap of $239.7 million and is part of the services sector and specialty retail industry. The stock has a beta of 0.79 and a short float of 7.1% with 5.33 days to cover. Shares are up 7.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Big 5 Sporting Goods as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 4.5%. Since the same quarter one year prior, revenues slightly increased by 1.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The current debt-to-equity ratio, 0.35, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.09 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Specialty Retail industry average, but is greater than that of the S&P 500. The net income has decreased by 17.9% when compared to the same quarter one year ago, dropping from $7.47 million to $6.13 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Specialty Retail industry and the overall market, BIG 5 SPORTING GOODS CORP'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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