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 "roof leaker" (crossing below the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified JPMorgan Chase as such a stock due to the following factors:
- JPM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $1.1 billion.
- JPM has traded 680,998 shares today.
- JPM is trading at 3.35 times the normal volume for the stock at this time of day.
- JPM crossed below its 200-day simple moving average.
'Roof Leaker' stocks are worth watching because trading stocks that begin to experience a breakdown can lead to potentially massive losses. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock may then be subject to emotional selling from investors that can continue to drive the stock lower. Regardless of the impetus behind the price and volume action, when a stock moves with weakness and volume it can indicate the start of a new, potentially dangerous, trend.
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More details on JPM:
JPMorgan Chase & Co., a financial holding company, provides various financial services worldwide. The stock currently has a dividend yield of 3%. JPM has a PE ratio of 8.6. Currently there are 18 analysts that rate JPMorgan Chase a buy, 1 analyst rates it a sell, and 4 rate it a hold.
The average volume for JPMorgan Chase has been 17.8 million shares per day over the past 30 days. JPMorgan Chase has a market cap of $193.7 billion and is part of the financial sector and banking industry. The stock has a beta of 1.84 and a short float of 1.1% with 2.12 days to cover. Shares are up 17% year to date as of the close of trading on Tuesday.
rates JPMorgan Chase as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, compelling growth in net income, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- Since the same quarter one year prior, revenues rose by 10.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has significantly increased by 63.20% to $68,520.00 million when compared to the same quarter last year.
- The net income increased by 31.0% when compared to the same quarter one year prior, rising from $4,960.00 million to $6,496.00 million.
- 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.
- Compared to where it was trading one year ago, JPM is up 27.60% to its most recent closing price of 52.75. Looking ahead, although the push and pull of a bull or bear market could certainly alter the outcome, our view is that this stock's positive fundamentals give it good potential for further appreciation.
- You can view the full JPMorgan Chase Ratings Report.