Trade-Ideas LLC identified

Western Alliance Bancorp

(

WAL

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

  • WAL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.6 million.
  • WAL has traded 70,565 shares today.
  • WAL is trading at 2.63 times the normal volume for the stock at this time of day.
  • WAL is trading at a new high 3.08% 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 WAL:

Western Alliance Bancorporation operates as the bank holding company for Western Alliance Bank that provides various banking products and related services primarily in Arizona, California, and Nevada. WAL has a PE ratio of 17. Currently there are 2 analysts that rate Western Alliance Bancorp a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Western Alliance Bancorp has been 733,300 shares per day over the past 30 days. Western Alliance has a market cap of $3.1 billion and is part of the financial sector and banking industry. The stock has a beta of 1.61 and a short float of 3.1% with 3.02 days to cover. Shares are up 8.6% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Western Alliance Bancorp as a

buy

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

Highlights from the ratings report include:

  • WAL's revenue growth has slightly outpaced the industry average of 1.3%. Since the same quarter one year prior, revenues slightly increased by 6.4%. 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 WESTERN ALLIANCE BANCORP is currently very high, coming in at 93.10%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 30.32% significantly outperformed against the industry average.
  • WESTERN ALLIANCE BANCORP' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, WESTERN ALLIANCE BANCORP increased its bottom line by earning $1.69 versus $1.32 in the prior year. This year, the market expects an improvement in earnings ($1.81 versus $1.69).
  • Compared to its closing price of one year ago, WAL's share price has jumped by 28.18%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • 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. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, WESTERN ALLIANCE BANCORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.

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