Trade-Ideas: Bank Of New York Mellon (BK) Is Today's Strong On High Relative 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 or Stephanie Link.
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Bank of New York Mellon as such a stock due to the following factors:
- BK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $219.9 million.
- BK has traded 1.0 million shares today.
- BK is trading at 3.84 times the normal volume for the stock at this time of day.
- BK 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 BK:
The Bank of New York Mellon Corporation provides various financial products and services in the United States and internationally. Its Investment Management segment provides institutional, intermediary, retirement and retail investment management, distribution, and related services. The stock currently has a dividend yield of 1.7%. BK has a PE ratio of 16.4. Currently there are 6 analysts that rate Bank of New York Mellon a buy, 1 analyst rates it a sell, and 7 rate it a hold.
The average volume for Bank of New York Mellon has been 5.6 million shares per day over the past 30 days. Bank of New York Mellon has a market cap of $43.9 billion and is part of the financial sector and financial services industry. Shares are down 3.4% year-to-date as of the close of trading on Thursday.
Analysis:
rates Bank of New York Mellon as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, attractive valuation levels, compelling growth in net income and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 12.8%. Since the same quarter one year prior, revenues slightly increased by 2.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 59.09% and other important driving factors, this stock has surged by 25.60% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 54.2% when compared to the same quarter one year prior, rising from $539.00 million to $831.00 million.
- The gross profit margin for BANK OF NEW YORK MELLON CORP is currently very high, coming in at 97.59%. 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 21.98% trails the industry average.
- You can view the full Bank of New York Mellon Ratings Report.
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