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.

Trade-Ideas LLC identified

Bbva Banco FrancesS.A

(

BFR

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

  • BFR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.0 million.
  • BFR has traded 155,392 shares today.
  • BFR is trading at 2.50 times the normal volume for the stock at this time of day.
  • BFR is trading at a new low 3.07% 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.

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More details on BFR:

TheStreet Recommends

BBVA Banco Frances S.A., together with its subsidiaries, provides various financial services to corporations, medium and small companies, and individual customers in the Republic of Argentina. The company offers checking and savings accounts, time deposits, and investment accounts. BFR has a PE ratio of 1.6. Currently there is 1 analyst that rates Bbva Banco FrancesS.A a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Bbva Banco FrancesS.A has been 254,700 shares per day over the past 30 days. Bbva Banco FrancesS.A has a market cap of $3.6 billion and is part of the financial sector and banking industry. Shares are up 44% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Bbva Banco FrancesS.A as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 1.6%. Since the same quarter one year prior, revenues rose by 44.4%. 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.
  • 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. Compared to other companies in the Commercial Banks industry and the overall market, BBVA BANCO FRANCES SA's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for BBVA BANCO FRANCES SA is rather high; currently it is at 65.41%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 18.68% is above that of the industry average.
  • Compared to its closing price of one year ago, BFR's share price has jumped by 119.08%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BFR should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • BBVA BANCO FRANCES SA's earnings per share declined by 14.8% in the most recent quarter compared to 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, BBVA BANCO FRANCES SA increased its bottom line by earning $2.10 versus $1.74 in the prior year. For the next year, the market is expecting a contraction of 9.3% in earnings ($1.91 versus $2.10).

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