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 Grupo Financiero Galicia ( GGAL) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Grupo Financiero Galicia as such a stock due to the following factors:

  • GGAL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.3 million.
  • GGAL has traded 191,299 shares today.
  • GGAL is down 3.5% today.
  • GGAL was up 5.5% yesterday.

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More details on GGAL:

Grupo Financiero Galicia S.A. operates as a financial services holding company in Argentina. The company operates through Banking, Regional Credit Cards, CFA Personal Loans, and Insurance segments. The stock currently has a dividend yield of 0.2%. GGAL has a PE ratio of 7.2. Currently there is 1 analyst that rates Grupo Financiero Galicia a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Grupo Financiero Galicia has been 595,300 shares per day over the past 30 days. Grupo Financiero Galicia has a market cap of $1.9 billion and is part of the financial sector and banking industry. Shares are up 37.3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Grupo Financiero Galicia 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, compelling growth in net income, notable return on equity and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • Powered by its strong earnings growth of 72.34% and other important driving factors, this stock has surged by 144.63% 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, GGAL should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • GRUPO FINANCIERO GALICIA SA reported significant earnings per share improvement 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, GRUPO FINANCIERO GALICIA SA increased its bottom line by earning $2.25 versus $2.19 in the prior year. This year, the market expects an improvement in earnings ($2.36 versus $2.25).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 79.2% when compared to the same quarter one year prior, rising from $58.42 million to $104.67 million.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Commercial Banks industry and the overall market, GRUPO FINANCIERO GALICIA SA's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for GRUPO FINANCIERO GALICIA SA is rather high; currently it is at 52.42%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, GGAL's net profit margin of 12.52% is significantly lower than the industry average.

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