Trade-Ideas LLC identified

BofI

(

BOFI

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

  • BOFI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $23.0 million.
  • BOFI has traded 97,677 shares today.
  • BOFI is trading at 2.69 times the normal volume for the stock at this time of day.
  • BOFI is trading at a new high 5.04% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in BOFI with the Ticky from Trade-Ideas. See the FREE profile for BOFI NOW at Trade-Ideas

More details on BOFI:

BofI Holding, Inc. operates as the holding company for BofI Federal Bank that provides consumer and business banking products through the Internet in the United States. The company's deposits products include consumer and business checking, demand, savings, and time deposit accounts. BOFI has a PE ratio of 12. Currently there are 5 analysts that rate BofI a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for BofI has been 1.6 million shares per day over the past 30 days. BofI has a market cap of $1.1 billion and is part of the financial sector and banking industry. The stock has a beta of -0.50 and a short float of 41.8% with 20.29 days to cover. Shares are down 14.2% year-to-date as of the close of trading on Wednesday.

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 BofI 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, impressive record of earnings per share growth and compelling growth in net income. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 14.6%. Since the same quarter one year prior, revenues rose by 34.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the 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 Thrifts & Mortgage Finance industry and the overall market, BOFI HOLDING INC's return on equity exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for BOFI HOLDING INC is currently very high, coming in at 82.10%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 31.47% significantly outperformed against the industry average.
  • BOFI HOLDING INC has improved earnings per share by 33.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BOFI HOLDING INC increased its bottom line by earning $1.34 versus $0.96 in the prior year. This year, the market expects an improvement in earnings ($1.81 versus $1.34).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Thrifts & Mortgage Finance industry. The net income increased by 42.9% when compared to the same quarter one year prior, rising from $17.84 million to $25.50 million.

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.