Trade-Ideas LLC identified

WisdomTree Investments

(

WETF

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

  • WETF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $35.1 million.
  • WETF has traded 568,232 shares today.
  • WETF is trading at 5.27 times the normal volume for the stock at this time of day.
  • WETF is trading at a new low 5.00% 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.

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

More details on WETF:

WisdomTree Investments, Inc., through its subsidiaries, operates as an exchange-traded funds (ETFs) sponsor and asset manager. It offers ETFs in equities, currency, fixed income, and alternatives asset classes. The stock currently has a dividend yield of 2.3%. WETF has a PE ratio of 28. Currently there are 4 analysts that rate WisdomTree Investments a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for WisdomTree Investments has been 2.6 million shares per day over the past 30 days. WisdomTree Investments has a market cap of $1.9 billion and is part of the financial sector and financial services industry. The stock has a beta of 3.41 and a short float of 14.7% with 6.03 days to cover. Shares are down 15.2% 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 WisdomTree Investments as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, increase in net income, expanding profit margins and good cash flow from operations. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • WETF's very impressive revenue growth greatly exceeded the industry average of 5.5%. Since the same quarter one year prior, revenues leaped by 71.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • WISDOMTREE INVESTMENTS INC reported significant earnings per share improvement 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, WISDOMTREE INVESTMENTS INC increased its bottom line by earning $0.45 versus $0.38 in the prior year. This year, the market expects an improvement in earnings ($0.58 versus $0.45).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 119.2% when compared to the same quarter one year prior, rising from $10.62 million to $23.29 million.
  • 49.48% is the gross profit margin for WISDOMTREE INVESTMENTS INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 28.83% significantly outperformed against the industry average.
  • Net operating cash flow has significantly increased by 85.97% to $44.62 million when compared to the same quarter last year. Despite an increase in cash flow of 85.97%, WISDOMTREE INVESTMENTS INC is still growing at a significantly lower rate than the industry average of 279.75%.

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.