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 "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified SLM as such a stock due to the following factors:
- SLM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $75.9 million.
- SLM has traded 72,758 shares today.
- SLM traded in a range 246.2% of the normal price range with a price range of $1.00.
- SLM traded below its daily resistance level (quality: 12 days, meaning that the stock is crossing a resistance level set by the last 12 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on SLM:
SLM Corporation, also known as Sallie Mae, originates, acquires, finances, and services private education loans in the United States. The company operates through three segments: Consumer Lending, Business Services, and FFELP Loans. The stock currently has a dividend yield of 2.3%. SLM has a PE ratio of 8.4. Currently there are 4 analysts that rate SLM a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for SLM has been 2.6 million shares per day over the past 30 days. SLM has a market cap of $11.4 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.22 and a short float of 3.3% with 5.13 days to cover. Shares are up 53.2% year to date as of the close of trading on Monday.
rates SLM as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, notable return on equity, expanding profit margins and impressive record of earnings per share growth. 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:
- Compared to where it was trading one year ago, SLM is up 54.64% to its most recent closing price of 26.12. 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.
- The net income increased by 38.3% when compared to the same quarter one year prior, rising from $188.00 million to $260.00 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.
- The gross profit margin for SLM CORP is rather high; currently it is at 69.53%. It has increased from the same quarter the previous year.
- SLM CORP has improved earnings per share by 41.0% 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, SLM CORP increased its bottom line by earning $1.94 versus $1.13 in the prior year. This year, the market expects an improvement in earnings ($2.95 versus $1.94).
- You can view the full SLM Ratings Report.