CBRE Group (CBG) Is Today's Strong On High Volume Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified CBRE Group as such a stock due to the following factors:
- CBG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $55.4 million.
- CBG has traded 901,641 shares today.
- CBG is trading at 13.06 times the normal volume for the stock at this time of day.
- CBG is trading at a new high 6.01% 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.
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More details on CBG:
CBRE Group, Inc. operates as a commercial real estate services and investment company worldwide. The company operates through Americas; Europe, Middle East and Africa; Asia Pacific; Global Investment Management; and Development Services segments. CBG has a PE ratio of 24.8. Currently there are 4 analysts that rate CBRE Group a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for CBRE Group has been 1.8 million shares per day over the past 30 days. CBRE Group has a market cap of $12.0 billion and is part of the financial sector and real estate industry. The stock has a beta of 1.32 and a short float of 0.7% with 1.46 days to cover. Shares are up 6.3% year-to-date as of the close of trading on Monday.
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Analysis:
rates CBRE Group as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 1.4%. Since the same quarter one year prior, revenues rose by 24.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- CBRE GROUP INC reported significant earnings per share improvement 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, CBRE GROUP INC increased its bottom line by earning $1.45 versus $0.94 in the prior year. This year, the market expects an improvement in earnings ($1.93 versus $1.45).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Management & Development industry. The net income increased by 78.2% when compared to the same quarter one year prior, rising from $114.65 million to $204.28 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Real Estate Management & Development industry and the overall market, CBRE GROUP INC's return on equity exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has increased to $593.30 million or 16.22% when compared to the same quarter last year. In addition, CBRE GROUP INC has also vastly surpassed the industry average cash flow growth rate of -51.22%.
- You can view the full CBRE Group Ratings Report.
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