This article will focus on five companies whose stock prices have increased while trading at unusually high volumes. Each of these companies has been able to increase earnings, and gain the support of institutional investors. Gaining the support of institutional investors is almost always a bullish signal for stocks that are about to move higher. Perhaps one or more of these stocks could be a good addition to your stock portfolio.
Cabelas (CAB, Financial) has a market cap of $2.47 billion with a price to earnings ratio of 17.95. The stock has traded in a 52 week range between $19.12 and $35.96. The stock is currently trading around $35. The company reported fourth quarter revenues of $983 million compared to revenues of $934 million in the fourth quarter of 2010. Fourth quarter net income was $69 million compared to net income of $66 million in the fourth quarter of 2010.
One of Cabelas competitors is Hibbett Sports Inc. (HIBB, Financial). Hibbett is currently trading around $48 with a market cap of $1.28 billion and a price to earnings ratio of 24.22. Neither Hibbett or Cabelas pays a dividend.
Cabelas is a chain retail store that sells hunting, fishing, camping, and miscellaneous outdoor merchandise. The stock is currently trading near its 52 week high and since it announced its fourth quarter earnings on February 16th the stocks trading volume has been well above its average trading volume of 558,074. The company beat earnings per share estimates of $0.99 by$0.07 and revenue estimates of $961 million by $21 million. Cabelas CEO Thomas Miller touted the company’s increased retail profitability and went on to say that” As a result of the progress we have made, improving retail profitability and return on capital, we are accelerating our retail store expansion.” The company plans to open 6 new stores in 2012 and has long term plans to open stores in the Western United States, the upper Midwest, and Canada. As a result of the company’s improving profitability the stock price has moved up by 35% over the last month and 26% since the February 16th earnings announcement. I would be careful about buying this stock at this time because of the recent rally in the stock price. Prospective investors should do further research.
Altisource Portfolio Solutions SA (ASPS, Financial) has a market cap of $9.52 billion with a price to earnings ratio of 20.46. The stock has traded in a 52 week range between $29.50 and $65.71. The stock is currently trading around $65. The company reported fourth quarter revenues of $132 million compared to revenues of $91 million in the fourth quarter of 2010. Fourth quarter net income was $25 million compared to net income of $16 million in the fourth quarter of 2010.
One of Altisource’s competitors is Fiserv Inc. (FISV, Financial). Fiserv is currently trading around $67 with a market cap of $9.52 billion and a price to earnings ratio of 20.46. Neither stock pays a dividend.
Altisource primarily provides mortgage management services for loan originators and loan services. In the fourth quarter the company increased year-over-year revenues by 45% and net income by 56%. Since February 10th the stocks trading volume has been considerably higher than its 50 day average trading volume of 145,587 shares. In the ten trading days Since February the 10th the stock price is up by 28%. The rise in the trading volume has been triggered by institutional purchases. The company benefited from the $25 billion mortgage settlement between banks and the government. The settlement should help the housing market begin to move in a positive direction. The company has increased revenues and net income in each of the last five years and should be even more profitable as the mortgage crisis clears up. If institutional investors continue to back this company the stock price will move higher. Prospective investors should do further research.
Liquidity Services (LQDT, Financial) has a market cap of $1.35 billion with a price to earnings ratio of 82.76. The stock has traded in a 52 week range between $14.45 and $44.80. The stock is currently trading around $44. The company reported first quarter revenues for the period ending on December 31st in the amount of $106 million compared to revenues of $75 million in the first quarter of 2010. First quarter net income was $9.1 million compared to net income of $1.3 million in the first quarter of 2010.
One of Liquidity Services competitors is EBAY (EBAY, Financial). EBAY is currently trading around $36 with a market cap of $46.79 billion and a price o earnings ratio of 14.78. Neither EBAY or Liquidity Services pays a dividend.
Liquidity Services runs an internet auction marketplace for surplus and salvage assets. The company is growing at a rapid rate and in the first quarter it increased year-over-year revenues by 41% and its net income by 600%. The stock has been trading higher in above average volume since February 1st. On February 1st the company announced first quarter earnings that exceeded expectations. However the company reduced its second quarter outlook. Since the earnings announcement the stock price has increased by 27.8%. In recent quarters Liquidity Services has been is the most successful of the online auction services. After the blowout first quarter the stock attracted institutional buyers, who is a bullish sign for its stock. Prospective investors should do further research.
Ascena Retail Group (ASNA, Financial) has a market cap of $2.87 billion with a price to earnings ratio of 17.92. The stock has traded in a 52 week range between $24.00 and $39.28. The stock is currently trading around $38. The company reported first quarter revenues for the period ending on October 29th in the amount of $768 million compared to revenues of $713 million in the first quarter of 2011. First quarter net income was $47 million compared to net income of $48 million in the first quarter of 2011.
One of Ascena’s competitors is Kohls Corporation (KSS, Financial). Kohls is currently trading around $49 with a market cap of $12.41 billion and a price to earnings ratio of 11.5. Kohls pays a dividend which yields 2% versus Ascena which does not pay a dividend.
Ascena is the parent company for women’s apparel stores operating under the Dressbarn, Maurices, and Justice brand names. In the first quarter the company’s year-over-year revenues increased by 7.7% but its net income decreased by $1 million. Since the beginning of 2012 the company’s stock has been trading in unusually high volumes. On January 5th the company announced that December sales were up in its Dressbarn and Justice brand stores and that it was increasing its 2012earnings estimate from $2.55 to $2.65 per share to $2.60 to $2.70 per share. Since the January 5th announcement the stock price has increased by 16%. It seems that Ascena now has the backing of institutional investors who believe that it will report strong second quarter earnings on March the 1st. Prospective investors should do further research.
Sourcefire (FIRE, Financial) has a market cap of $1.29 billion with a price to earnings ratio of 211.27. The stock has traded in a 52 week range between $23.20 and $46.29. The stock is currently trading around $45. The company reported fourth quarter revenues of $53 million compared to revenues of $38 million in the fourth quarter of 2010. Fourth quarter net income was $4.1 million compared to net income of $4.4 million in the fourth quarter of 2010.
One of Sourcefire’s competitors is Cisco Systems (CSCO, Financial). Cisco is currently trading around $20 with a market cap of $107.69 billion and a price to earnings ratio of 15.52. Cisco pays a dividend which yields 1.6% versus Sourcefire which does not pay a dividend.
Sourcefire provides Cybersecurity products and solutions for information technology systems. In the fourth quarter the company increased year-over-year net income by 39% but saw net income decrease by 7%. The stock has been trading at above average volumes throughout 2012. On February 21st the company reported fourth quarter earnings in which its earnings per share beat estimate of $0.19 by $0.06 and its revenues estimates by $6 million. On February 21st the stocks trading volume was 5,604,100 shares compared to its average trading volume of 127,705 shares. In addition, on February 21st the stock price moved higher by 26%. Since the beginning of 2012 the stock price is up by 40%. Sourcefire will be able to continue increasing its business as corporations and governments try to protect themselves against the threat of cyber terrorism. After its recent price run up I would not buy the stock at this time. However I would reconsider upon any price pullbacks. Prospective investors should do further research.
Cabelas (CAB, Financial) has a market cap of $2.47 billion with a price to earnings ratio of 17.95. The stock has traded in a 52 week range between $19.12 and $35.96. The stock is currently trading around $35. The company reported fourth quarter revenues of $983 million compared to revenues of $934 million in the fourth quarter of 2010. Fourth quarter net income was $69 million compared to net income of $66 million in the fourth quarter of 2010.
One of Cabelas competitors is Hibbett Sports Inc. (HIBB, Financial). Hibbett is currently trading around $48 with a market cap of $1.28 billion and a price to earnings ratio of 24.22. Neither Hibbett or Cabelas pays a dividend.
Cabelas is a chain retail store that sells hunting, fishing, camping, and miscellaneous outdoor merchandise. The stock is currently trading near its 52 week high and since it announced its fourth quarter earnings on February 16th the stocks trading volume has been well above its average trading volume of 558,074. The company beat earnings per share estimates of $0.99 by$0.07 and revenue estimates of $961 million by $21 million. Cabelas CEO Thomas Miller touted the company’s increased retail profitability and went on to say that” As a result of the progress we have made, improving retail profitability and return on capital, we are accelerating our retail store expansion.” The company plans to open 6 new stores in 2012 and has long term plans to open stores in the Western United States, the upper Midwest, and Canada. As a result of the company’s improving profitability the stock price has moved up by 35% over the last month and 26% since the February 16th earnings announcement. I would be careful about buying this stock at this time because of the recent rally in the stock price. Prospective investors should do further research.
Altisource Portfolio Solutions SA (ASPS, Financial) has a market cap of $9.52 billion with a price to earnings ratio of 20.46. The stock has traded in a 52 week range between $29.50 and $65.71. The stock is currently trading around $65. The company reported fourth quarter revenues of $132 million compared to revenues of $91 million in the fourth quarter of 2010. Fourth quarter net income was $25 million compared to net income of $16 million in the fourth quarter of 2010.
One of Altisource’s competitors is Fiserv Inc. (FISV, Financial). Fiserv is currently trading around $67 with a market cap of $9.52 billion and a price to earnings ratio of 20.46. Neither stock pays a dividend.
Altisource primarily provides mortgage management services for loan originators and loan services. In the fourth quarter the company increased year-over-year revenues by 45% and net income by 56%. Since February 10th the stocks trading volume has been considerably higher than its 50 day average trading volume of 145,587 shares. In the ten trading days Since February the 10th the stock price is up by 28%. The rise in the trading volume has been triggered by institutional purchases. The company benefited from the $25 billion mortgage settlement between banks and the government. The settlement should help the housing market begin to move in a positive direction. The company has increased revenues and net income in each of the last five years and should be even more profitable as the mortgage crisis clears up. If institutional investors continue to back this company the stock price will move higher. Prospective investors should do further research.
Liquidity Services (LQDT, Financial) has a market cap of $1.35 billion with a price to earnings ratio of 82.76. The stock has traded in a 52 week range between $14.45 and $44.80. The stock is currently trading around $44. The company reported first quarter revenues for the period ending on December 31st in the amount of $106 million compared to revenues of $75 million in the first quarter of 2010. First quarter net income was $9.1 million compared to net income of $1.3 million in the first quarter of 2010.
One of Liquidity Services competitors is EBAY (EBAY, Financial). EBAY is currently trading around $36 with a market cap of $46.79 billion and a price o earnings ratio of 14.78. Neither EBAY or Liquidity Services pays a dividend.
Liquidity Services runs an internet auction marketplace for surplus and salvage assets. The company is growing at a rapid rate and in the first quarter it increased year-over-year revenues by 41% and its net income by 600%. The stock has been trading higher in above average volume since February 1st. On February 1st the company announced first quarter earnings that exceeded expectations. However the company reduced its second quarter outlook. Since the earnings announcement the stock price has increased by 27.8%. In recent quarters Liquidity Services has been is the most successful of the online auction services. After the blowout first quarter the stock attracted institutional buyers, who is a bullish sign for its stock. Prospective investors should do further research.
Ascena Retail Group (ASNA, Financial) has a market cap of $2.87 billion with a price to earnings ratio of 17.92. The stock has traded in a 52 week range between $24.00 and $39.28. The stock is currently trading around $38. The company reported first quarter revenues for the period ending on October 29th in the amount of $768 million compared to revenues of $713 million in the first quarter of 2011. First quarter net income was $47 million compared to net income of $48 million in the first quarter of 2011.
One of Ascena’s competitors is Kohls Corporation (KSS, Financial). Kohls is currently trading around $49 with a market cap of $12.41 billion and a price to earnings ratio of 11.5. Kohls pays a dividend which yields 2% versus Ascena which does not pay a dividend.
Ascena is the parent company for women’s apparel stores operating under the Dressbarn, Maurices, and Justice brand names. In the first quarter the company’s year-over-year revenues increased by 7.7% but its net income decreased by $1 million. Since the beginning of 2012 the company’s stock has been trading in unusually high volumes. On January 5th the company announced that December sales were up in its Dressbarn and Justice brand stores and that it was increasing its 2012earnings estimate from $2.55 to $2.65 per share to $2.60 to $2.70 per share. Since the January 5th announcement the stock price has increased by 16%. It seems that Ascena now has the backing of institutional investors who believe that it will report strong second quarter earnings on March the 1st. Prospective investors should do further research.
Sourcefire (FIRE, Financial) has a market cap of $1.29 billion with a price to earnings ratio of 211.27. The stock has traded in a 52 week range between $23.20 and $46.29. The stock is currently trading around $45. The company reported fourth quarter revenues of $53 million compared to revenues of $38 million in the fourth quarter of 2010. Fourth quarter net income was $4.1 million compared to net income of $4.4 million in the fourth quarter of 2010.
One of Sourcefire’s competitors is Cisco Systems (CSCO, Financial). Cisco is currently trading around $20 with a market cap of $107.69 billion and a price to earnings ratio of 15.52. Cisco pays a dividend which yields 1.6% versus Sourcefire which does not pay a dividend.
Sourcefire provides Cybersecurity products and solutions for information technology systems. In the fourth quarter the company increased year-over-year net income by 39% but saw net income decrease by 7%. The stock has been trading at above average volumes throughout 2012. On February 21st the company reported fourth quarter earnings in which its earnings per share beat estimate of $0.19 by $0.06 and its revenues estimates by $6 million. On February 21st the stocks trading volume was 5,604,100 shares compared to its average trading volume of 127,705 shares. In addition, on February 21st the stock price moved higher by 26%. Since the beginning of 2012 the stock price is up by 40%. Sourcefire will be able to continue increasing its business as corporations and governments try to protect themselves against the threat of cyber terrorism. After its recent price run up I would not buy the stock at this time. However I would reconsider upon any price pullbacks. Prospective investors should do further research.
