Trade-Ideas LLC identified

Regions Financial

(

RF

) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Regions Financial as such a stock due to the following factors:

  • RF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $155.3 million.
  • RF traded 20,517 shares today in the pre-market hours as of 9:28 AM.
  • RF is up 3.4% today from yesterday's close.

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More details on RF:

Regions Financial Corporation, together with its subsidiaries, provides banking and bank-related services to individual and corporate customers in the United States. The stock currently has a dividend yield of 2.6%. RF has a PE ratio of 12. Currently there are 11 analysts that rate Regions Financial a buy, 1 analyst rates it a sell, and 8 rate it a hold.

The average volume for Regions Financial has been 17.7 million shares per day over the past 30 days. Regions Financial has a market cap of $12.0 billion and is part of the financial sector and banking industry. The stock has a beta of 1.24 and a short float of 1.5% with 1.17 days to cover. Shares are down 16.7% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Regions Financial as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • RF's revenue growth has slightly outpaced the industry average of 1.2%. Since the same quarter one year prior, revenues slightly increased by 0.6%. 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.
  • Net operating cash flow has increased to $473.00 million or 46.89% when compared to the same quarter last year. Despite an increase in cash flow of 46.89%, REGIONS FINANCIAL CORP is still growing at a significantly lower rate than the industry average of 2759.78%.
  • The gross profit margin for REGIONS FINANCIAL CORP is currently very high, coming in at 90.89%. Regardless of RF's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, RF's net profit margin of 20.60% compares favorably to the industry average.
  • REGIONS FINANCIAL CORP' earnings per share from the most recent quarter came in slightly below the year earlier quarter. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. Despite the past stability of earnings, the consensus estimate anticipates a weakening in earnings. During the past fiscal year, REGIONS FINANCIAL CORP's EPS of $0.78 remained unchanged from the prior years' EPS of $0.78. For the next year, the market is expecting a contraction of 1.3% in earnings ($0.77 versus $0.78).
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, RF has underperformed the S&P 500 Index, declining 12.38% from its price level of one year ago. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.

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