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

  • FRAN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $19.5 million.
  • FRAN has traded 135,426 shares today.
  • FRAN is trading at 3.64 times the normal volume for the stock at this time of day.
  • FRAN is trading at a new high 3.04% 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 FRAN:

Francesca's Holdings Corporation, through its subsidiaries, operates a chain of retail boutiques. It offers fashion apparel, jewelry, accessories, and gifts primarily for women between the ages of 18 and 35. FRAN has a PE ratio of 26. Currently there are 6 analysts that rate Francescas Holdings a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Francescas Holdings has been 741,500 shares per day over the past 30 days. Francescas has a market cap of $722.3 million and is part of the services sector and retail industry. The stock has a beta of -0.01 and a short float of 10.5% with 3.63 days to cover. Shares are up 5.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Francescas Holdings as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:
  • FRAN's revenue growth has slightly outpaced the industry average of 9.9%. Since the same quarter one year prior, revenues rose by 19.1%. 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.
  • FRAN has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, FRAN has a quick ratio of 1.65, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. In comparison to other companies in the Specialty Retail industry and the overall market on the basis of return on equity, FRANCESCAS HOLDINGS CORP has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
  • Net operating cash flow has decreased to $5.87 million or 10.11% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, FRANCESCAS HOLDINGS CORP has marginally lower results.

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