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

Hudson City Bancorp

(

HCBK

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

  • HCBK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $40.7 million.
  • HCBK has traded 1.3 million shares today.
  • HCBK is trading at 10.00 times the normal volume for the stock at this time of day.
  • HCBK is trading at a new high 3.07% 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 HCBK with the Ticky from Trade-Ideas. See the FREE profile for HCBK NOW at Trade-Ideas

More details on HCBK:

Hudson City Bancorp, Inc. operates as the holding company of Hudson City Savings Bank that provides various banking products and services in the United States. The stock currently has a dividend yield of 1.6%. HCBK has a PE ratio of 32.2. Currently there are no analysts that rate Hudson City Bancorp a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Hudson City Bancorp has been 2.8 million shares per day over the past 30 days. Hudson City has a market cap of $5.5 billion and is part of the financial sector and banking industry. The stock has a beta of 1.06 and a short float of 0.8% with 1.02 days to cover. Shares are up 3% year-to-date as of the close of trading on Friday.

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 Hudson City Bancorp as a

buy

. The company's strengths can be seen in multiple areas, such as its expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from the ratings report include:

  • HCBK, with its decline in revenue, slightly underperformed the industry average of 5.5%. Since the same quarter one year prior, revenues slightly dropped by 5.7%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • 42.64% is the gross profit margin for HUDSON CITY BANCORP INC which we consider to be strong. Regardless of HCBK's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, HCBK's net profit margin of 12.39% is significantly lower than the industry average.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • HUDSON CITY BANCORP INC's earnings per share declined by 11.1% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, HUDSON CITY BANCORP INC reported lower earnings of $0.32 versus $0.38 in the prior year. For the next year, the market is expecting a contraction of 70.3% in earnings ($0.10 versus $0.32).
  • 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 Thrifts & Mortgage Finance industry. The net income has decreased by 14.6% when compared to the same quarter one year ago, dropping from $45.83 million to $39.14 million.

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.

null