Trade-Ideas LLC identified

Grupo Financiero Santander Mexico SAB de CV

(

BSMX

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Grupo Financiero Santander Mexico SAB de CV as such a stock due to the following factors:

  • BSMX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.9 million.
  • BSMX has traded 339,410 shares today.
  • BSMX is trading at 5.95 times the normal volume for the stock at this time of day.
  • BSMX is trading at a new high 5.11% 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.

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More details on BSMX:

TheStreet Recommends

Grupo Financiero Santander Mexico, S.A.B. de C.V., through its subsidiaries, provides a range of financial services to individuals, private banking clients, small and medium-sized enterprises, government institutions, and corporate and institutional customers primarily in Mexico. The stock currently has a dividend yield of 3.6%. BSMX has a PE ratio of 12. Currently there is 1 analyst that rates Grupo Financiero Santander Mexico SAB de CV a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Grupo Financiero Santander Mexico SAB de CV has been 1.3 million shares per day over the past 30 days. Grupo Financiero Santander Mexico SAB de CV has a market cap of $11.5 billion and is part of the financial sector and banking industry. Shares are down 15% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Grupo Financiero Santander Mexico SAB de CV as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, deteriorating net income and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 34.51%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 31.81% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, BSMX is still more expensive than most of the other companies in its industry.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Commercial Banks industry average. The net income has significantly decreased by 29.9% when compared to the same quarter one year ago, falling from $285.95 million to $200.39 million.
  • GRUPO FINANCIERO SANTANDER's earnings per share declined by 31.8% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, GRUPO FINANCIERO SANTANDER reported lower earnings of $0.66 versus $0.69 in the prior year. This year, the market expects an improvement in earnings ($0.69 versus $0.66).
  • BSMX, with its decline in revenue, underperformed when compared the industry average of 3.6%. Since the same quarter one year prior, revenues fell by 16.7%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The gross profit margin for GRUPO FINANCIERO SANTANDER is rather high; currently it is at 52.04%. Regardless of BSMX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 15.89% trails the industry average.

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