Trade-Ideas LLC identified

Assured Guaranty

(

AGO

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

  • AGO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $32.5 million.
  • AGO has traded 105,815 shares today.
  • AGO is trading at 2.73 times the normal volume for the stock at this time of day.
  • AGO is trading at a new low 3.03% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 AGO with the Ticky from Trade-Ideas. See the FREE profile for AGO NOW at Trade-Ideas

More details on AGO:

Assured Guaranty Ltd., through its subsidiaries, provides credit protection products to public finance, infrastructure, and structured finance markets in the United States and internationally. The stock currently has a dividend yield of 2%. AGO has a PE ratio of 3. Currently there are 2 analysts that rate Assured Guaranty a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Assured Guaranty has been 1.4 million shares per day over the past 30 days. Assured Guaranty has a market cap of $3.4 billion and is part of the financial sector and insurance industry. The stock has a beta of 1.79 and a short float of 5.8% with 6.23 days to cover. Shares are down 10.1% year-to-date as of the close of trading on Friday.

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 Assured Guaranty as a

buy

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • Although AGO's debt-to-equity ratio of 0.22 is very low, it is currently higher than that of the industry average.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Insurance industry and the overall market, ASSURED GUARANTY LTD's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • The gross profit margin for ASSURED GUARANTY LTD is rather high; currently it is at 54.76%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, AGO's net profit margin of 34.12% significantly outperformed against the industry.
  • AGO, with its decline in revenue, underperformed when compared the industry average of 15.7%. Since the same quarter one year prior, revenues fell by 30.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • ASSURED GUARANTY LTD has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, ASSURED GUARANTY LTD increased its bottom line by earning $6.49 versus $4.41 in the prior year. For the next year, the market is expecting a contraction of 29.9% in earnings ($4.55 versus $6.49).

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.