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

  • ICON has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.3 million.
  • ICON has traded 86,318 shares today.
  • ICON is trading at 2.23 times the normal volume for the stock at this time of day.
  • ICON is trading at a new high 3.11% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in ICON with the Ticky from Trade-Ideas. See the FREE profile for ICON NOW at Trade-Ideas

More details on ICON:

Iconix Brand Group, Inc., a brand management company, owns a portfolio of consumer brands across women's, men's, entertainment, and home industries in the United States and internationally. Currently there is 1 analyst that rates Iconix Brand Group a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Iconix Brand Group has been 1.1 million shares per day over the past 30 days. Iconix Brand Group has a market cap of $353.7 million and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.56 and a short float of 42.9% with 9.43 days to cover. Shares are up 3.5% year-to-date as of the close of trading on Wednesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Iconix Brand Group as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally high debt management risk, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry. The net income has significantly decreased by 71.5% when compared to the same quarter one year ago, falling from $65.36 million to $18.62 million.
  • 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. Compared to other companies in the Textiles, Apparel & Luxury Goods industry and the overall market, ICONIX BRAND GROUP INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The debt-to-equity ratio is very high at 2.32 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 2.59, which shows the ability to cover short-term cash needs.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 72.24%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 70.63% compared to the year-earlier 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.
  • ICONIX BRAND GROUP INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, ICONIX BRAND GROUP INC swung to a loss, reporting -$4.01 versus $1.80 in the prior year. This year, the market expects an improvement in earnings ($1.17 versus -$4.01).

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.