Silver Wheaton (SLW) Flagged As Strong On High Volume

Trade-Ideas LLC identified Silver Wheaton (SLW) as a strong on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Silver Wheaton

(

SLW

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

  • SLW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $69.6 million.
  • SLW has traded 787,931 shares today.
  • SLW is trading at 2.52 times the normal volume for the stock at this time of day.
  • SLW is trading at a new high 6.00% 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 SLW:

Silver Wheaton Corp. operates as a precious metals streaming company worldwide. The company has 18 long-term purchase agreements and 1 early deposit long-term purchase agreement associated with silver and gold relating to 27 various mining assets. The stock currently has a dividend yield of 1.5%. SLW has a PE ratio of 3. Currently there are 13 analysts that rate Silver Wheaton a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Silver Wheaton has been 5.8 million shares per day over the past 30 days. Silver Wheaton has a market cap of $5.6 billion and is part of the basic materials sector and metals & mining industry. Shares are down 32.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Silver Wheaton as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and disappointing return on equity.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 46.1%. Since the same quarter one year prior, revenues rose by 10.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • SLW's debt-to-equity ratio is very low at 0.16 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 4.08, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for SILVER WHEATON CORP is currently very high, coming in at 70.93%. Regardless of SLW's high profit margin, it has managed to decrease from the same period last year.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 28.46%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 27.77% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, SLW is still more expensive than most of the other companies in its industry.
  • SILVER WHEATON CORP's earnings per share declined by 27.8% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, SILVER WHEATON CORP reported lower earnings of $0.55 versus $1.05 in the prior year. For the next year, the market is expecting a contraction of 5.5% in earnings ($0.52 versus $0.55).

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