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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified

National Bank of Greece

(

NBG

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

  • NBG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.4 million.
  • NBG has traded 2.0 million shares today.
  • NBG is trading at 4.03 times the normal volume for the stock at this time of day.
  • NBG is trading at a new low 10.10% 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.

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More details on NBG:

TheStreet Recommends

National Bank of Greece S.A., together with its subsidiaries, offers diversified financial services primarily in Greece. The company is involved in retail and commercial banking, investment management, investment banking, insurance, investment activities, and securities trading activities. NBG has a PE ratio of 48.8. Currently there is 1 analyst that rates National Bank of Greece a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for National Bank of Greece has been 4.5 million shares per day over the past 30 days. National Bank of Greece has a market cap of $6.9 billion and is part of the financial sector and banking industry. Shares are down 65.2% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates National Bank of Greece as a

sell

. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • NBG'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 65.18%, 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, on the basis of net income growth 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 increased by 9.8% when compared to the same quarter one year prior, going from -$92.93 million to -$83.82 million.
  • The revenue fell significantly faster than the industry average of 5.6%. Since the same quarter one year prior, revenues fell by 30.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • NATIONAL BANK OF GREECE reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, NATIONAL BANK OF GREECE turned its bottom line around by earning $1.98 versus -$27.80 in the prior year. For the next year, the market is expecting a contraction of 92.9% in earnings ($0.14 versus $1.98).
  • 36.50% is the gross profit margin for NATIONAL BANK OF GREECE which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -5.49% is in-line with the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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