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

Comerica

(

CMA

) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Comerica as such a stock due to the following factors:

  • CMA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $66.8 million.
  • CMA has traded 971,758 shares today.
  • CMA is trading at 4.30 times the normal volume for the stock at this time of day.
  • CMA crossed above its 200-day simple moving average.

'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. 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 on. 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 CMA:

Comerica Incorporated, through its subsidiaries, provides various financial products and services. It operates through three segments: Business Bank, Retail Bank, and Wealth Management. The stock currently has a dividend yield of 1.8%. CMA has a PE ratio of 14.4. Currently there are 5 analysts that rate Comerica a buy, 2 analysts rate it a sell, and 17 rate it a hold.

The average volume for Comerica has been 1.5 million shares per day over the past 30 days. Comerica has a market cap of $8.1 billion and is part of the financial sector and banking industry. The stock has a beta of 1.27 and a short float of 5.2% with 6.03 days to cover. Shares are down 0.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Comerica as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, attractive valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • CMA's revenue growth has slightly outpaced the industry average of 0.4%. Since the same quarter one year prior, revenues slightly increased by 7.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • The gross profit margin for COMERICA INC is currently very high, coming in at 94.79%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 19.39% is above that of the industry average.
  • COMERICA INC reported flat earnings per share in the most recent quarter. 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, COMERICA INC increased its bottom line by earning $3.15 versus $2.86 in the prior year. For the next year, the market is expecting a contraction of 4.8% in earnings ($3.00 versus $3.15).
  • 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. When compared to other companies in the Commercial Banks industry and the overall market, COMERICA INC's return on equity is below that of both the industry average and the S&P 500.

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