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

  • FCFS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.0 million.
  • FCFS has traded 61,215 shares today.
  • FCFS is trading at 16.46 times the normal volume for the stock at this time of day.
  • FCFS is trading at a new low 4.00% 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 FCFS:

First Cash Financial Services, Inc. operates retail-based pawn and consumer finance stores in the United States and Mexico. The stock currently has a dividend yield of 1.1%. FCFS has a PE ratio of 2. Currently there are 3 analysts that rate First Cash Financial Services a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for First Cash Financial Services has been 244,300 shares per day over the past 30 days. First Cash Financial Services has a market cap of $1.2 billion and is part of the financial sector and financial services industry. The stock has a beta of 0.77 and a short float of 8.3% with 13.68 days to cover. Shares are up 18.9% year-to-date as of the close of trading on Thursday.

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TheStreet Quant Ratings rates First Cash Financial Services as a hold. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including poor profit margins, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • The current debt-to-equity ratio, 0.60, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 4.81, which clearly demonstrates the ability to cover short-term cash needs.
  • FCFS, with its decline in revenue, slightly underperformed the industry average of 3.3%. Since the same quarter one year prior, revenues slightly dropped by 5.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • FIRST CASH FINANCIAL SVCS's earnings per share declined by 26.6% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, FIRST CASH FINANCIAL SVCS reported lower earnings of $2.15 versus $2.95 in the prior year. This year, the market expects an improvement in earnings ($2.27 versus $2.15).
  • The gross profit margin for FIRST CASH FINANCIAL SVCS is currently lower than what is desirable, coming in at 26.34%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 10.13% trails that of the industry average.
  • Net operating cash flow has declined marginally to $27.63 million or 2.55% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, FIRST CASH FINANCIAL SVCS has marginally lower results.

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