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 $9.0 million.
  • BSMX has traded 60,136 shares today.
  • BSMX is trading at 2.18 times the normal volume for the stock at this time of day.
  • BSMX is trading at a new high 3.01% 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:

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 3.1%. BSMX has a PE ratio of 13. 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 1.5 million shares per day over the past 30 days. Grupo Financiero Santander Mexico SAB de CV has a market cap of $12.0 billion and is part of the financial sector and banking industry. Shares are up 3.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Grupo Financiero Santander Mexico SAB de CV as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and good cash flow from operations. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 5.4%. Since the same quarter one year prior, revenues rose by 10.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 65.8% when compared to the same quarter one year prior, rising from $141.96 million to $235.46 million.
  • GRUPO FINANCIERO SANTANDER reported significant earnings per share improvement in the most recent quarter compared to 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, GRUPO FINANCIERO SANTANDER reported lower earnings of $0.61 versus $0.66 in the prior year. This year, the market expects an improvement in earnings ($0.67 versus $0.61).
  • 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 Commercial Banks industry and the overall market, GRUPO FINANCIERO SANTANDER's return on equity exceeds that of both the industry average and the S&P 500.
  • BSMX has underperformed the S&P 500 Index, declining 22.11% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.

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