T. Rowe Price Group (TROW): Stock With Unusual Social Activity

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 T. Rowe Price Group ( TROW) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified T. Rowe Price Group as such a stock due to the following factors:

  • TROW has 13x the normal benchmarked social activity for this time of the day compared to its average of 1.62 mentions/day.
  • TROW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $171.5 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 TROW:

T. Rowe Price Group, Inc. is a publicly owned asset management holding company. The firm primarily provides its services to individual and institutional investors, retirement plans, and financial intermediaries. The stock currently has a dividend yield of 2%. TROW has a PE ratio of 20.6. Currently there are 8 analysts that rate T. Rowe Price Group a buy, no analysts rate it a sell, and 9 rate it a hold.

The average volume for T. Rowe Price Group has been 1.3 million shares per day over the past 30 days. T. Rowe Price Group has a market cap of $20.0 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.26 and a short float of 1.4% with 1.75 days to cover. Shares are down 3.7% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates T. Rowe Price Group as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, growth in earnings per share and increase in stock price during the past year. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 14.8%. Since the same quarter one year prior, revenues rose by 14.9%. 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. In comparison to the other companies in the Capital Markets industry and the overall market, PRICE (T. ROWE) GROUP's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • The gross profit margin for PRICE (T. ROWE) GROUP is rather high; currently it is at 50.67%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 30.56% significantly outperformed against the industry average.
  • PRICE (T. ROWE) GROUP has improved earnings per share by 6.4% 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, PRICE (T. ROWE) GROUP increased its bottom line by earning $3.36 versus $2.92 in the prior year. This year, the market expects an improvement in earnings ($3.86 versus $3.36).
  • The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.

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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