Trade-Ideas LLC identified

SLM

(

SLM

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

  • SLM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $19.9 million.
  • SLM has traded 226,155 shares today.
  • SLM is trading at 2.52 times the normal volume for the stock at this time of day.
  • SLM is trading at a new high 3.03% 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 SLM:

SLM Corporation, together with its subsidiaries, operates as a saving, planning, and paying for education company in the United States. The company offers private education loans to students and their families. SLM has a PE ratio of 16. Currently there are 5 analysts that rate SLM a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for SLM has been 4.1 million shares per day over the past 30 days. SLM has a market cap of $2.9 billion and is part of the financial sector and financial services industry. The stock has a beta of 0.96 and a short float of 5.6% with 6.26 days to cover. Shares are down 35.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates SLM as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, unimpressive growth in net income, weak operating cash flow and poor profit margins.

Highlights from the ratings report include:

  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 32.77%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 50.00% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, SLM is still more expensive than most of the other companies in its industry.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Consumer Finance industry. The net income has significantly decreased by 44.9% when compared to the same quarter one year ago, falling from $82.93 million to $45.72 million.
  • Net operating cash flow has significantly decreased to -$44.94 million or 606.22% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for SLM CORP is currently lower than what is desirable, coming in at 29.40%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 21.88% is above that of the industry average.
  • SLM CORP's earnings per share declined by 50.0% in the most recent quarter compared to the same quarter a year ago. This year, the market expects an improvement in earnings ($0.58 versus $0.41).

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