First Majestic Silver (AG) Is Today's Strong On High Volume Stock

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

  • AG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.5 million.
  • AG has traded 260,439 shares today.
  • AG is trading at 2.22 times the normal volume for the stock at this time of day.
  • AG is trading at a new high 3.16% 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 AG:

First Majestic Silver Corp. acquires, develops, and explores mineral properties with a focus on silver projects in Mexico. Currently there are 4 analysts that rate First Majestic Silver a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for First Majestic Silver has been 1.7 million shares per day over the past 30 days. First Majestic has a market cap of $642.9 million and is part of the basic materials sector and metals & mining industry. Shares are down 48.3% year-to-date as of the close of trading on Wednesday.

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 First Majestic Silver as a sell. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity.

Highlights from the ratings report include:
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, FIRST MAJESTIC SILVER CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • This stock's share value has moved by only 54.57% over the past year. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • FIRST MAJESTIC SILVER CORP has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, FIRST MAJESTIC SILVER CORP swung to a loss, reporting -$0.33 versus $0.78 in the prior year.
  • 36.16% is the gross profit margin for FIRST MAJESTIC SILVER CORP which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 11.34% trails the industry average.
  • Net operating cash flow has slightly increased to $27.51 million or 6.30% when compared to the same quarter last year. In addition, FIRST MAJESTIC SILVER CORP has also vastly surpassed the industry average cash flow growth rate of -55.48%.

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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