Trade-Ideas LLC identified

Comerica

(

CMA

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Comerica as such a stock due to the following factors:

  • CMA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $92.7 million.
  • CMA has traded 60,140 shares today.
  • CMA is up 3% today.
  • CMA was down 7.6% yesterday.

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More details on CMA:

Comerica Incorporated, through its subsidiaries, provides various financial products and services. It operates through three segments: Business Bank, Retail Bank, and Wealth Management. The stock currently has a dividend yield of 2%. CMA has a PE ratio of 18. Currently there are 5 analysts that rate Comerica a buy, 2 analysts rate it a sell, and 11 rate it a hold.

The average volume for Comerica has been 2.6 million shares per day over the past 30 days. Comerica has a market cap of $7.8 billion and is part of the financial sector and banking industry. The stock has a beta of 1.35 and a short float of 4.2% with 2.10 days to cover. Shares are down 4.3% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Comerica as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • CMA's revenue growth has slightly outpaced the industry average of 0.1%. Since the same quarter one year prior, revenues slightly increased by 3.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The gross profit margin for COMERICA INC is currently very high, coming in at 75.91%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, CMA's net profit margin of 8.35% is significantly lower than the industry average.
  • Net operating cash flow has decreased to $245.00 million or 27.51% when compared to the same quarter last year. Despite a decrease in cash flow of 27.51%, COMERICA INC is still significantly exceeding the industry average of -155.00%.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Commercial Banks industry and the overall market, COMERICA INC's return on equity is below that of both the industry average and the S&P 500.
  • The share price of COMERICA INC has not done very well: it is down 15.33% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Despite the stock's decline during the last year, it is still somewhat more expensive (in proportion to its earnings over the last year) than most other stocks in its industry. We feel, however, that other strengths this company displays offset this slight negative.

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