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 or Stephanie Link.
Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Starwood Property as such a stock due to the following factors:
- STWD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $35.0 million.
- STWD has traded 254,410 shares today.
- STWD is trading at 6.75 times the normal volume for the stock at this time of day.
- STWD is trading at a new low 4.00% 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.
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More details on STWD:
Starwood Property Trust, Inc. originates, acquires, finances, and manages commercial mortgage loans, other commercial real estate debt investments, commercial mortgage-backed securities, and other commercial real estate-related debt investments in the United States and Europe. The stock currently has a dividend yield of 8.4%. STWD has a PE ratio of 11.0. Currently there are 6 analysts that rate Starwood Property a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Starwood Property has been 1.7 million shares per day over the past 30 days. Starwood Property has a market cap of $5.1 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.69 and a short float of 5.6% with 7.34 days to cover. Shares are down 17.9% year-to-date as of the close of trading on Thursday.
rates Starwood Property as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in stock price during the past year, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 11.6%. Since the same quarter one year prior, revenues rose by 30.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- STARWOOD PROPERTY TRUST INC has improved earnings per share by 26.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, STARWOOD PROPERTY TRUST INC increased its bottom line by earning $1.86 versus $1.78 in the prior year. This year, the market expects an improvement in earnings ($2.16 versus $1.86).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 95.0% when compared to the same quarter one year prior, rising from $60.45 million to $117.87 million.
- You can view the full Starwood Property Ratings Report.