Trade-Ideas LLC identified

Lloyds Banking Group

(

LYG

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Lloyds Banking Group as such a stock due to the following factors:

  • LYG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.8 million.
  • LYG has traded 378,858 shares today.
  • LYG is trading at 2.34 times the normal volume for the stock at this time of day.
  • LYG is trading at a new high 3.02% 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 LYG:

Lloyds Banking Group plc provides a range of banking and financial services to individuals and businesses in the United Kingdom and internationally. The company operates through five segments: Retail, Commercial Banking, Consumer Finance, Insurance, and TSB. The stock currently has a dividend yield of 2.1%. Currently there are 2 analysts that rate Lloyds Banking Group a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Lloyds Banking Group has been 3.8 million shares per day over the past 30 days. Lloyds Banking Group has a market cap of $76.6 billion and is part of the financial sector and banking industry. Shares are down 7.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Lloyds Banking Group as a

hold

. The company's strengths can be seen in multiple areas, such as its expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and unimpressive growth in net income.

Highlights from the ratings report include:

  • The gross profit margin for LLOYDS BANKING GROUP PLC is currently very high, coming in at 83.89%. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, LYG's net profit margin of 15.28% significantly trails the industry average.
  • LLOYDS BANKING GROUP PLC's earnings per share declined by 16.7% 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, LLOYDS BANKING GROUP PLC turned its bottom line around by earning $0.10 versus -$0.08 in the prior year. This year, the market expects an improvement in earnings ($0.52 versus $0.10).
  • The revenue fell significantly faster than the industry average of 1.3%. Since the same quarter one year prior, revenues fell by 32.8%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Commercial Banks industry average, but is greater than that of the S&P 500. The net income has decreased by 6.8% when compared to the same quarter one year ago, dropping from $1,024.64 million to $954.84 million.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, LYG has underperformed the S&P 500 Index, declining 8.92% 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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