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 strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified MBIA as such a stock due to the following factors:
- MBI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.2 million.
- MBI has traded 199,613 shares today.
- MBI is trading at 2.47 times the normal volume for the stock at this time of day.
- MBI 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 MBI:
MBIA Inc., together with its subsidiaries, provides financial guarantee insurance and related reinsurance, advisory, and portfolio services for the public and structured finance markets; and asset management advisory services in the United States and internationally. MBI has a PE ratio of 2.8.
The average volume for MBIA has been 1.9 million shares per day over the past 30 days. MBIA has a market cap of $1.8 billion and is part of the financial sector and insurance industry. The stock has a beta of 2.18 and a short float of 3.7% with 2.24 days to cover. Shares are down 22.1% year-to-date as of the close of trading on Friday.
rates MBIA as a
. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Insurance industry average. The net income increased by 31.1% when compared to the same quarter one year prior, rising from $132.00 million to $173.00 million.
- The gross profit margin for MBIA INC is rather high; currently it is at 64.16%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 76.54% significantly outperformed against the industry average.
- MBIA INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MBIA INC reported lower earnings of $1.10 versus $6.33 in the prior year. This year, the market expects an improvement in earnings ($2.94 versus $1.10).
- MBI has underperformed the S&P 500 Index, declining 17.16% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The debt-to-equity ratio is very high at 2.30 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
- You can view the full MBIA Ratings Report.