New York Community Bancorp (NYCB) Weak On High Volume Today - TheStreet

Trade-Ideas LLC identified

New York Community Bancorp

(

NYCB

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified New York Community Bancorp as such a stock due to the following factors:

  • NYCB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $48.1 million.
  • NYCB has traded 3.1 million shares today.
  • NYCB is trading at 21.17 times the normal volume for the stock at this time of day.
  • NYCB is trading at a new low 8.04% 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 NYCB:

New York Community Bancorp, Inc. operates as a holding company for New York Community Bank and New York Commercial Bank that offer banking products and financial services in New York, New Jersey, Florida, Ohio, and Arizona. The stock currently has a dividend yield of 5.3%. NYCB has a PE ratio of 17. Currently there is 1 analyst that rates New York Community Bancorp a buy, 4 analysts rate it a sell, and 6 rate it a hold.

The average volume for New York Community Bancorp has been 3.0 million shares per day over the past 30 days. New York Community has a market cap of $8.3 billion and is part of the financial sector and banking industry. The stock has a beta of 0.77 and a short float of 9.6% with 15.02 days to cover. Shares are up 19.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates New York Community Bancorp as a

buy

. The company's strengths can be seen in multiple areas, such as its expanding profit margins, solid stock price performance and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • The gross profit margin for NEW YORK CMNTY BANCORP INC is currently very high, coming in at 71.79%. 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 25.25% trails the industry average.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 10.0%. Since the same quarter one year prior, revenues slightly dropped by 3.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • NEW YORK CMNTY BANCORP INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, NEW YORK CMNTY BANCORP INC increased its bottom line by earning $1.10 versus $1.08 in the prior year. For the next year, the market is expecting a contraction of 2.7% in earnings ($1.07 versus $1.10).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Thrifts & Mortgage Finance industry and the overall market, NEW YORK CMNTY BANCORP INC's return on equity is below that of both the industry average and the S&P 500.

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