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Trade-Ideas LLC identified

CNO Financial Group

(

CNO

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

  • CNO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $29.1 million.
  • CNO has traded 165,811 shares today.
  • CNO is trading at 3.90 times the normal volume for the stock at this time of day.
  • CNO is trading at a new low 3.03% 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 CNO:

TheStreet Recommends

CNO Financial Group, Inc., through its subsidiaries, develops, markets, and administers health insurance, annuity, individual life insurance, and other insurance products for senior and middle-income markets in the United States. The stock currently has a dividend yield of 1.4%. CNO has a PE ratio of 109. Currently there are 2 analysts that rate CNO Financial Group a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for CNO Financial Group has been 1.5 million shares per day over the past 30 days. CNO Financial Group has a market cap of $3.8 billion and is part of the financial sector and insurance industry. The stock has a beta of 0.97 and a short float of 6.8% with 8.89 days to cover. Shares are up 14.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates CNO Financial Group as a

buy

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, solid stock price performance and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 13.1%. Since the same quarter one year prior, revenues slightly dropped by 6.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • CNO's debt-to-equity ratio of 0.94 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further.
  • CNO FINANCIAL GROUP INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, CNO FINANCIAL GROUP INC reported lower earnings of $0.27 versus $2.09 in the prior year. This year, the market expects an improvement in earnings ($1.29 versus $0.27).
  • 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. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Insurance industry and the overall market, CNO FINANCIAL GROUP INC's return on equity is below that of both the industry average and the S&P 500.

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