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 Tree.com ( TREE) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Tree.com as such a stock due to the following factors:
- TREE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.1 million.
- TREE has traded 180,766 shares today.
- TREE is trading at 3.01 times the normal volume for the stock at this time of day.
- TREE is trading at a new high 4.04% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on TREE:
Tree.com, Inc., through its subsidiaries, owns various brands and businesses that provide information, tools, advice, products, and services for critical transactions in consumers' lives. Currently there is 1 analyst that rates Tree.com a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Tree.com has been 117,000 shares per day over the past 30 days. Tree.com has a market cap of $331.7 million and is part of the financial sector and mortgage finance industry. The stock has a beta of 0.75 and a short float of 4.7% with 2.72 days to cover. Shares are down 7.2% year-to-date as of the close of trading on Thursday.
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TheStreet Quant Ratings rates Tree.com as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and disappointing return on equity.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 32.9%. Since the same quarter one year prior, revenues rose by 12.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
- The gross profit margin for TREE.COM INC is currently very high, coming in at 95.50%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -0.58% is in-line with the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Thrifts & Mortgage Finance industry. The net income has significantly decreased by 103.5% when compared to the same quarter one year ago, falling from $7.08 million to -$0.25 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Thrifts & Mortgage Finance industry and the overall market, TREE.COM INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Tree.com Ratings Report.