OneMain Holdings (OMF) Flagged As Strong On High Volume

Trade-Ideas LLC identified OneMain Holdings (OMF) as a strong on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

OneMain Holdings

(

OMF

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified OneMain Holdings as such a stock due to the following factors:

  • OMF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.4 million.
  • OMF has traded 148,552 shares today.
  • OMF is trading at 2.67 times the normal volume for the stock at this time of day.
  • OMF is trading at a new high 3.01% 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 OMF:

OneMain Holdings, Inc., through its subsidiaries, provides consumer finance and insurance products and services. It provides personal loans secured by consumer household goods, and other personal property; unsecured loans; and loans secured by subordinate residential real estate mortgages. Currently there are 9 analysts that rate OneMain Holdings a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for OneMain Holdings has been 755,300 shares per day over the past 30 days. OneMain has a market cap of $3.2 billion and is part of the financial sector and financial services industry. Shares are down 40.1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates OneMain Holdings as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and disappointing return on equity.

Highlights from the ratings report include:

  • The debt-to-equity ratio is very high at 5.08 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
  • 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 Consumer Finance industry and the overall market, ONEMAIN HOLDINGS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • This stock's share value has moved by only 53.77% over the past year. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • ONEMAIN HOLDINGS INC has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. 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, ONEMAIN HOLDINGS INC swung to a loss, reporting -$1.80 versus $4.37 in the prior year. This year, the market expects an improvement in earnings ($4.35 versus -$1.80).
  • 48.12% is the gross profit margin for ONEMAIN HOLDINGS INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 15.97% trails the industry average.

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