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

SLM

(

SLM

) as a weak 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 $29.6 million.
  • SLM has traded 588,642 shares today.
  • SLM is trading at 4.51 times the normal volume for the stock at this time of day.
  • SLM is trading at a new low 4.16% 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.

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

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 24. Currently there are 4 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 2.9 million shares per day over the past 30 days. SLM has a market cap of $4.2 billion and is part of the financial sector and financial services industry. The stock has a beta of 0.99 and a short float of 6.3% with 6.62 days to cover. Shares are down 3.3% year-to-date as of the close of trading on Wednesday.

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 SLM as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 9.4%. Since the same quarter one year prior, revenues rose by 24.4%. 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.
  • SLM has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign.
  • In comparison to the other companies in the Consumer Finance industry and the overall market, SLM CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • SLM CORP's earnings per share declined by 9.1% 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).

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.