Aegon (AEG) Strong On High Relative Volume Today

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 Aegon ( AEG) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Aegon as such a stock due to the following factors:

  • AEG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.0 million.
  • AEG has traded 159,049 shares today.
  • AEG is trading at 2.98 times the normal volume for the stock at this time of day.
  • AEG is trading at a new high 3.10% 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 AEG:

Aegon N.V. provides life insurance, pension, and asset management products and services. The stock currently has a dividend yield of 3.2%. AEG has a PE ratio of 3.9. Currently there is 1 analyst that rates Aegon a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Aegon has been 866,700 shares per day over the past 30 days. Aegon has a market cap of $19.7 billion and is part of the financial sector and insurance industry. Shares are down 15% year-to-date as of the close of trading on Tuesday.

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 Aegon as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • AEG's very impressive revenue growth greatly exceeded the industry average of 19.9%. Since the same quarter one year prior, revenues leaped by 105.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has significantly increased by 107.93% to $879.22 million when compared to the same quarter last year. In addition, AEGON NV has also vastly surpassed the industry average cash flow growth rate of -7.25%.
  • AEGON NV has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, AEGON NV reported lower earnings of $0.51 versus $0.89 in the prior year. This year, the market expects an improvement in earnings ($0.63 versus $0.51).
  • Despite currently having a low debt-to-equity ratio of 0.60, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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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