Skip to main content

Trade-Ideas LLC identified

Genworth Financial

(

GNW

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

  • GNW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $76.8 million.
  • GNW has traded 740,707 shares today.
  • GNW is trading at 2.26 times the normal volume for the stock at this time of day.
  • GNW is trading at a new low 3.14% 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 GNW with the Ticky from Trade-Ideas. See the FREE profile for GNW NOW at Trade-Ideas

More details on GNW:

TheStreet Recommends

Genworth Financial, Inc. provides insurance, retirement, and homeownership solutions in the United States and internationally. It operates through U.S. Life Insurance, International Mortgage Insurance, U.S. Mortgage Insurance, International Protection, and Runoff segments. The U.S. Currently there are 2 analysts that rate Genworth Financial a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Genworth Financial has been 8.7 million shares per day over the past 30 days. Genworth Financial has a market cap of $2.5 billion and is part of the financial sector and insurance industry. The stock has a beta of 2.41 and a short float of 6.6% with 2.11 days to cover. Shares are down 40% 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 Genworth Financial as a

sell

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

Highlights from the ratings report include:

  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Insurance industry and the overall market, GENWORTH FINANCIAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for GENWORTH FINANCIAL INC is currently extremely low, coming in at 10.10%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, GNW's net profit margin of -13.52% significantly underperformed when compared to the industry average.
  • GNW's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 47.65%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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.
  • Despite currently having a low debt-to-equity ratio of 0.50, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further.
  • Despite the weak revenue results, GNW has outperformed against the industry average of 15.5%. Since the same quarter one year prior, revenues slightly dropped by 4.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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.