Trade-Ideas LLC identified Noah Holdings ( NOAH) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Noah Holdings as such a stock due to the following factors:

  • NOAH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.7 million.
  • NOAH has traded 89,134 shares today.
  • NOAH is trading at 6.18 times the normal volume for the stock at this time of day.
  • NOAH is trading at a new high 4.17% 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 NOAH: Noah Holdings Limited, through its subsidiaries, provides wealth management services with focus on wealth investment and asset allocation services for high net worth individuals and enterprises in the People's Republic of China. NOAH has a PE ratio of 18. Currently there are no analysts that rate Noah Holdings a buy, no analysts rate it a sell, and 1 rates it a hold. The average volume for Noah Holdings has been 347,500 shares per day over the past 30 days. Noah has a market cap of $1.4 billion and is part of the financial sector and financial services industry. Shares are down 9.9% year-to-date as of the close of trading on Wednesday.

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TheStreet Recommends

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Noah Holdings as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself. Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 23.1%. Since the same quarter one year prior, revenues rose by 40.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • NOAH HOLDINGS LTD -ADR's earnings per share declined by 11.5% 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, NOAH HOLDINGS LTD -ADR increased its bottom line by earning $1.41 versus $1.29 in the prior year. This year, the market expects an improvement in earnings ($1.74 versus $1.41).
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Capital Markets industry average. The net income has decreased by 12.6% when compared to the same quarter one year ago, dropping from $14.76 million to $12.90 million.
  • 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. In comparison to the other companies in the Capital Markets industry and the overall market, NOAH HOLDINGS LTD -ADR's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • The gross profit margin for NOAH HOLDINGS LTD -ADR is currently lower than what is desirable, coming in at 32.34%. It has decreased significantly from the same period last year. Regardless of the weak results of the gross profit margin, the net profit margin of 14.56% is above that of the industry average.

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