Trade-Ideas LLC identified DeVry Education Group ( DV) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified DeVry Education Group as such a stock due to the following factors:

  • DV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.0 million.
  • DV has traded 218,839 shares today.
  • DV is trading at 7.22 times the normal volume for the stock at this time of day.
  • DV is trading at a new low 6.14% 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 DV:

DeVry Education Group Inc. provides educational services worldwide. It operates through three segments: Medical and Healthcare; International and Professional Educational; and Business, Technology and Management. The stock currently has a dividend yield of 1.8%. DV has a PE ratio of 32. Currently there are 2 analysts that rate DeVry Education Group a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for DeVry Education Group has been 1.0 million shares per day over the past 30 days. DeVry Education Group has a market cap of $1.2 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.68 and a short float of 19.3% with 14.53 days to cover. Shares are down 20.2% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates DeVry Education Group as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • DV 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. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.28, which illustrates the ability to avoid short-term cash problems.
  • DEVRY EDUCATION GROUP INC has improved earnings per share by 26.6% 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, DEVRY EDUCATION GROUP INC reported lower earnings of $2.06 versus $2.33 in the prior year. This year, the market expects an improvement in earnings ($2.37 versus $2.06).
  • DV's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 38.57%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. When compared to other companies in the Diversified Consumer Services industry and the overall market, DEVRY EDUCATION GROUP INC's return on equity is below that of both the industry average and the S&P 500.

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