The Case for and Against Express, Inc. (EXPR)

Express, Inc. (EXPR) is an interesting player in the Services space, with a focus on Apparel Stores. The stock has been active on the tape, currently trading at $7.36, up from yesterday’s close by 0.27%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Express, Inc. (EXPR) currently trades with a market capitalization of $576.88 Million. That value represents a market adjusting for revenues that have been falling by -1.47 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $114.5 Million over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of $0.32 on a per share basis this quarter. Perhaps, that suggests something about why 5.85% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, Express, Inc. recorded a 52-week high of $11.34. It is now trading 3.98% off that level. The stock is trading $7.55 its 50-day moving average by 0.19%. The stock carved out a 52-week low down at $5.28.

In recent action, Express, Inc. (EXPR) has made a move of +3.08% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 17.8, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 16.82% with $77.43 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of EXPR.

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