Trade-Ideas LLC identified

Mitsubishi UFJ Financial Group

(

MTU

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

  • MTU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.6 million.
  • MTU has traded 272,194 shares today.
  • MTU is trading at 2.38 times the normal volume for the stock at this time of day.
  • MTU is trading at a new high 3.13% 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 MTU:

Mitsubishi UFJ Financial Group, Inc., through its subsidiaries, provides financial services in Japan and internationally. The stock currently has a dividend yield of 2.9%. Currently there is 1 analyst that rates Mitsubishi UFJ Financial Group a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Mitsubishi UFJ Financial Group has been 1.4 million shares per day over the past 30 days. Mitsubishi UFJ Financial Group has a market cap of $66.3 billion and is part of the financial sector and banking industry. Shares are down 23% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Mitsubishi UFJ Financial Group as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 0.0%. Since the same quarter one year prior, revenues rose by 33.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The gross profit margin for MITSUBISHI UFJ FINANCIAL GRP is currently very high, coming in at 87.25%. Regardless of MTU's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MTU's net profit margin of 9.34% is significantly lower than the industry average.
  • MTU'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 40.48%, 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.
  • 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. When compared to other companies in the Commercial Banks industry and the overall market, MITSUBISHI UFJ FINANCIAL GRP's return on equity is below that of both the industry average and the S&P 500.

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