Trade-Ideas LLC identified Ruth's Hospitality Group ( RUTH) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Ruth's Hospitality Group as such a stock due to the following factors:

  • RUTH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.4 million.
  • RUTH has traded 93,859 shares today.
  • RUTH is trading at 3.90 times the normal volume for the stock at this time of day.
  • RUTH is trading at a new low 4.01% 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 RUTH:

Ruth's Hospitality Group, Inc., together with its subsidiaries, develops, operates, and franchises fine dining restaurants. Its restaurants offer food and beverage products to special occasion diners and frequent customers. The stock currently has a dividend yield of 1.6%. RUTH has a PE ratio of 19. Currently there are 3 analysts that rate Ruth's Hospitality Group a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Ruth's Hospitality Group has been 315,700 shares per day over the past 30 days. Ruth's Hospitality Group has a market cap of $572.7 million and is part of the services sector and leisure industry. The stock has a beta of 0.38 and a short float of 4% with 4.86 days to cover. Shares are up 6.6% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Ruth's Hospitality Group as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, reasonable valuation levels and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • RUTHS HOSPITALITY GROUP INC has improved earnings per share by 6.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, RUTHS HOSPITALITY GROUP INC increased its bottom line by earning $0.88 versus $0.74 in the prior year. This year, the market expects an improvement in earnings ($0.95 versus $0.88).
  • Despite its growing revenue, the company underperformed as compared with the industry average of 11.5%. Since the same quarter one year prior, revenues slightly increased by 4.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Net operating cash flow has increased to $12.36 million or 34.91% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 13.94%.

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