Trade-Ideas LLC identified

Deutsche Bank

(

DB

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

  • DB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $69.7 million.
  • DB has traded 357,026 shares today.
  • DB is trading at 2.30 times the normal volume for the stock at this time of day.
  • DB is trading at a new low 3.04% 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 DB:

TST Recommends

Deutsche Bank AG provides investment, financial, and related products and services worldwide. Its Corporate Banking & Securities division engages in selling, trading, and structuring a range of fixed income, equity, equity-linked, foreign exchange, and commodities products. DB has a PE ratio of 2. Currently there are no analysts that rate Deutsche Bank a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Deutsche Bank has been 1.9 million shares per day over the past 30 days. Deutsche has a market cap of $25.7 billion and is part of the financial sector and banking industry. Shares are down 22.7% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Deutsche Bank as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Capital Markets industry. The net income has significantly decreased by 2479.5% when compared to the same quarter one year ago, falling from -$260.15 million to -$6,710.64 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Capital Markets industry and the overall market, DEUTSCHE BANK AG's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 37.70%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 2447.36% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The gross profit margin for DEUTSCHE BANK AG is rather high; currently it is at 69.18%. Regardless of DB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, DB's net profit margin of -58.28% significantly underperformed when compared to the industry average.
  • DEUTSCHE BANK AG 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. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, DEUTSCHE BANK AG increased its bottom line by earning $1.83 versus $1.01 in the prior year. This year, the market expects an improvement in earnings ($3.98 versus $1.83).

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