Trade-Ideas LLC identified

Noah Holdings

(

NOAH

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

  • NOAH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.8 million.
  • NOAH has traded 178,976 shares today.
  • NOAH is trading at 11.06 times the normal volume for the stock at this time of day.
  • NOAH is trading at a new high 4.15% 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 NOAH:

TheStreet Recommends

Noah Holdings Limited, through its subsidiaries, provides wealth management services with focus on wealth investment and asset allocation services for high net worth individuals and enterprises in the People's Republic of China. NOAH has a PE ratio of 32. Currently there is 1 analyst that rates Noah Holdings a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Noah Holdings has been 350,000 shares per day over the past 30 days. Noah has a market cap of $1.7 billion and is part of the financial sector and financial services industry. Shares are up 38.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Noah Holdings as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 5.7%. Since the same quarter one year prior, revenues rose by 31.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • NOAH HOLDINGS LTD -ADR has improved earnings per share by 28.1% 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, NOAH HOLDINGS LTD -ADR increased its bottom line by earning $1.29 versus $0.93 in the prior year. This year, the market expects an improvement in earnings ($1.64 versus $1.29).
  • 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 33.7% when compared to the same quarter one year prior, rising from $17.91 million to $23.94 million.
  • 39.12% is the gross profit margin for NOAH HOLDINGS LTD -ADR which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 28.97% significantly outperformed against the industry average.
  • Powered by its strong earnings growth of 28.12% and other important driving factors, this stock has surged by 42.80% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp 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 other strengths this company displays justify these higher price levels.

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