Skip to main content

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.

Trade-Ideas LLC identified

Popular

(

BPOP

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

  • BPOP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $63.7 million.
  • BPOP has traded 385,164 shares today.
  • BPOP is trading at 6.44 times the normal volume for the stock at this time of day.
  • BPOP is trading at a new high 3.01% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in BPOP with the Ticky from Trade-Ideas. See the FREE profile for BPOP NOW at Trade-Ideas

More details on BPOP:

TheStreet Recommends

Popular, Inc., through its subsidiaries, provides various retail and commercial banking products and services primarily to institutional and retail customers. The company accepts various deposit products. Currently there is 1 analyst that rates Popular a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Popular has been 908,700 shares per day over the past 30 days. Popular has a market cap of $3.1 billion and is part of the financial sector and banking industry. The stock has a beta of 1.59 and a short float of 1.5% with 0.73 days to cover. Shares are down 15.2% year-to-date as of the close of trading on Tuesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Popular as a

hold

. The company's strengths can be seen in multiple areas, such as its expanding profit margins and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • The gross profit margin for POPULAR INC is currently very high, coming in at 82.80%. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, BPOP's net profit margin of 14.80% significantly trails the industry average.
  • POPULAR INC has improved earnings per share by 10.9% 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, POPULAR INC swung to a loss, reporting -$1.88 versus $5.49 in the prior year. This year, the market expects an improvement in earnings ($3.37 versus -$1.88).
  • BPOP, with its decline in revenue, slightly underperformed the industry average of 0.0%. Since the same quarter one year prior, revenues slightly dropped by 1.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Net operating cash flow has significantly decreased to -$9.83 million or 106.14% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Commercial Banks industry and the overall market, POPULAR INC's return on equity significantly trails that of both the industry average and the S&P 500.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.