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 Raymond James Financial ( RJF) 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 Raymond James Financial as such a stock due to the following factors:
- RJF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $38.2 million.
- RJF has traded 115,043 shares today.
- RJF traded in a range 342.7% of the normal price range with a price range of $2.68.
- RJF traded below its daily resistance level (quality: 8 days, meaning that the stock is crossing a resistance level set by the last 8 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. EXCLUSIVE OFFER: Get the inside scoop on opportunities in RJF with the Ticky from Trade-Ideas. See the FREE profile for RJF NOW at Trade-Ideas More details on RJF: Raymond James Financial, Inc., a financial holding company, through its subsidiaries, is engaged in the underwriting, distribution, trading, and brokerage of equity and debt securities, as well as the sale of mutual funds and other investment products in the United States, Canada, and Europe. The stock currently has a dividend yield of 1.2%. RJF has a PE ratio of 21.1. Currently there are 3 analysts that rate Raymond James Financial a buy, no analysts rate it a sell, and 2 rate it a hold. The average volume for Raymond James Financial has been 640,500 shares per day over the past 30 days. Raymond James Financial has a market cap of $7.6 billion and is part of the financial sector and financial services industry. Shares are up 3.2% year-to-date as of the close of trading on Wednesday. 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 Raymond James Financial as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins. Highlights from the ratings report include:
- RJF's revenue growth has slightly outpaced the industry average of 1.3%. Since the same quarter one year prior, revenues slightly increased by 5.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 36.66% and other important driving factors, this stock has surged by 30.34% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, RJF should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- RAYMOND JAMES FINANCIAL CORP has improved earnings per share by 36.7% 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, RAYMOND JAMES FINANCIAL CORP increased its bottom line by earning $2.58 versus $2.20 in the prior year. This year, the market expects an improvement in earnings ($3.17 versus $2.58).
- 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 41.0% when compared to the same quarter one year prior, rising from $83.33 million to $117.46 million.
- You can view the full Raymond James Financial Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.