Trade-Ideas: State Street (STT) Is Today's Unusual Social Activity Stock

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 State Street ( STT) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified State Street as such a stock due to the following factors:

  • STT has 18x the normal benchmarked social activity for this time of the day compared to its average of 2.00 mentions/day.
  • STT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $177.6 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on STT:

State Street Corporation, a financial holding company, provides investment servicing and investment management services to institutional investors worldwide. The stock currently has a dividend yield of 1.5%. STT has a PE ratio of 16.0. Currently there are 13 analysts that rate State Street a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for State Street has been 3.0 million shares per day over the past 30 days. State Street has a market cap of $31.7 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.69 and a short float of 1.3% with 2.36 days to cover. Shares are up 49.1% year to date as of the close of trading on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates State Street as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, attractive valuation levels, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 58.56% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, STT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • STATE STREET CORP has improved earnings per share by 15.3% 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, STATE STREET CORP increased its bottom line by earning $4.19 versus $3.79 in the prior year. This year, the market expects an improvement in earnings ($4.55 versus $4.19).
  • The gross profit margin for STATE STREET CORP is currently very high, coming in at 95.64%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 18.22% is above that of the industry average.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Capital Markets industry average. The net income increased by 8.7% when compared to the same quarter one year prior, going from $427.00 million to $464.00 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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