TCF Financial (TCB) Is Today's Dead Cat Bounce Stock
Trade-Ideas LLC identified
(
) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified TCF Financial as such a stock due to the following factors:
- TCB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $28.9 million.
- TCB has traded 64,448 shares today.
- TCB is up 3.7% today.
- TCB was down 5.4% yesterday.
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More details on TCB:
TCF Financial Corporation operates as the bank holding company for TCF National Bank that provides various retail and commercial banking products and services. The stock currently has a dividend yield of 1.9%. TCB has a PE ratio of 18. Currently there are 3 analysts that rate TCF Financial a buy, 2 analysts rate it a sell, and 7 rate it a hold.
The average volume for TCF Financial has been 1.1 million shares per day over the past 30 days. TCF Financial has a market cap of $2.7 billion and is part of the financial sector and banking industry. The stock has a beta of 0.90 and a short float of 2.5% with 1.77 days to cover. Shares are down 6.7% year-to-date as of the close of trading on Thursday.
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Analysis:
rates TCF Financial as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, increase in net income, attractive valuation levels and increase in stock price during the past year. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- TCB's revenue growth has slightly outpaced the industry average of 3.3%. Since the same quarter one year prior, revenues slightly increased by 0.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
- TCF FINANCIAL CORP 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, TCF FINANCIAL CORP increased its bottom line by earning $0.94 versus $0.82 in the prior year. This year, the market expects an improvement in earnings ($1.08 versus $0.94).
- The gross profit margin for TCF FINANCIAL CORP is currently very high, coming in at 91.56%. 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 15.65% trails the industry average.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Commercial Banks industry average. The net income increased by 0.5% when compared to the same quarter one year prior, going from $52.32 million to $52.58 million.
- You can view the full TCF Financial Ratings Report.
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