Eyes On US Bancorp (USB): Highlighted Storm The Castle Stock

Trade-Ideas LLC identified US Bancorp (USB) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

US Bancorp

(

USB

) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified US Bancorp as such a stock due to the following factors:

  • USB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $250.6 million.
  • USB has traded 2.9 million shares today.
  • USB is trading at 2.82 times the normal volume for the stock at this time of day.
  • USB crossed above its 200-day simple moving average.

'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. 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 on. 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 USB with the Ticky from Trade-Ideas. See the FREE profile for USB NOW at Trade-Ideas

More details on USB:

U.S. Bancorp, a financial services holding company, provides a range of financial services in the United States. The stock currently has a dividend yield of 2.5%. USB has a PE ratio of 13. Currently there are 8 analysts that rate US Bancorp a buy, 1 analyst rates it a sell, and 14 rate it a hold.

The average volume for US Bancorp has been 7.6 million shares per day over the past 30 days. US has a market cap of $70.2 billion and is part of the financial sector and banking industry. The stock has a beta of 0.85 and a short float of 1% with 2.80 days to cover. Shares are down 4.8% 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 US Bancorp as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • USB's revenue growth has slightly outpaced the industry average of 0.1%. Since the same quarter one year prior, revenues slightly increased by 3.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • U S BANCORP reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, U S BANCORP increased its bottom line by earning $3.17 versus $3.08 in the prior year. This year, the market expects an improvement in earnings ($3.25 versus $3.17).
  • The gross profit margin for U S BANCORP is currently very high, coming in at 86.67%. Regardless of USB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, USB's net profit margin of 25.81% compares favorably to the industry average.
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and the Commercial Banks industry average. The net income has decreased by 3.1% when compared to the same quarter one year ago, dropping from $1,431.00 million to $1,386.00 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, U S BANCORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.

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.

Loading ...