Trade-Ideas LLC identified

WisdomTree Investments

(

WETF

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

  • WETF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $31.9 million.
  • WETF has traded 468,539 shares today.
  • WETF is trading at 4.80 times the normal volume for the stock at this time of day.
  • WETF is trading at a new high 3.01% 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 WETF:

WisdomTree Investments, Inc., through its subsidiaries, operates as an exchange-traded funds (ETFs) sponsor and asset manager. It offers ETFs in equities, currency, fixed income, and alternatives asset classes. The stock currently has a dividend yield of 2.6%. WETF has a PE ratio of 615. Currently there are 5 analysts that rate WisdomTree Investments a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for WisdomTree Investments has been 3.2 million shares per day over the past 30 days. WisdomTree Investments has a market cap of $1.6 billion and is part of the financial sector and financial services industry. The stock has a beta of 2.82 and a short float of 22.5% with 10.16 days to cover. Shares are down 21.7% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates WisdomTree Investments as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, expanding profit margins, compelling growth in net income and good cash flow from operations. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • WETF's very impressive revenue growth greatly exceeded the industry average of 2.5%. Since the same quarter one year prior, revenues leaped by 54.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • 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 other companies in the Capital Markets industry and the overall market, WISDOMTREE INVESTMENTS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • 49.02% is the gross profit margin for WISDOMTREE INVESTMENTS INC which we consider to be strong. It has increased significantly from the same period last year. Along with this, the net profit margin of 26.84% significantly outperformed against the industry average.
  • 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 113.4% when compared to the same quarter one year prior, rising from $9.62 million to $20.53 million.
  • Net operating cash flow has significantly increased by 73.06% to $44.96 million when compared to the same quarter last year. Despite an increase in cash flow of 73.06%, WISDOMTREE INVESTMENTS INC is still growing at a significantly lower rate than the industry average of 399.27%.

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