Today's Unusual Social Activity Stock: State Street (STT)

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 11x 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 $166.6 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 16.1. Currently there are 11 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 2.4 million shares per day over the past 30 days. State Street has a market cap of $31.2 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.67 and a short float of 0.6% with 1.24 days to cover. Shares are up 50.8% year to date as of the close of trading on Tuesday.

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 revenue growth, solid stock price performance, attractive valuation levels, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 8.6%. Since the same quarter one year prior, revenues slightly increased by 2.2%. 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.
  • Compared to its closing price of one year ago, STT's share price has jumped by 60.57%, exceeding the performance of the broader market during that same time frame. 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.
  • The gross profit margin for STATE STREET CORP is currently very high, coming in at 96.15%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 21.41% is above that of the industry average.
  • Net operating cash flow has slightly increased to $1,097.00 million or 4.97% when compared to the same quarter last year. Despite an increase in cash flow of 4.97%, STATE STREET CORP is still growing at a significantly lower rate than the industry average of 269.14%.

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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