UBS (UBS) Trading With Heavy Volume Before Market Open

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 UBS ( UBS) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified UBS as such a stock due to the following factors:

  • UBS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $32.7 million.
  • UBS traded 185,374 shares today in the pre-market hours as of 7:43 AM, representing 10.3% of its average daily volume.

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More details on UBS:

UBS AG, a financial services firm, provides retail, wealth management, corporate and institutional banking, asset management, and investment banking products and services worldwide. The company's Wealth Management division provides financial services to high net worth individuals. The stock currently has a dividend yield of 1.5%. UBS has a PE ratio of 17.1. Currently there are 3 analysts that rate UBS a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for UBS has been 1.9 million shares per day over the past 30 days. UBS has a market cap of $69.3 billion and is part of the financial sector and banking industry. Shares are down 4.6% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates UBS as a hold. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income and reasonable valuation levels. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:
  • UBS AG has improved earnings per share by 14.8% 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 year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, UBS AG turned its bottom line around by earning $0.93 versus -$0.73 in the prior year. This year, the market expects an improvement in earnings ($1.16 versus $0.93).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Capital Markets industry average. The net income increased by 14.5% when compared to the same quarter one year prior, going from $1,041.10 million to $1,192.31 million.
  • 38.50% is the gross profit margin for UBS AG which we consider to be strong. Regardless of UBS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 11.95% trails the industry average.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Capital Markets industry and the overall market, UBS AG's return on equity is below that of both the industry average and the S&P 500.
  • In its most recent trading session, UBS has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

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