Noah Holdings (NOAH) Flagged As Strong On High Volume

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

  • NOAH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.1 million.
  • NOAH has traded 345,142 shares today.
  • NOAH is trading at 24.86 times the normal volume for the stock at this time of day.
  • NOAH is trading at a new high 7.03% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in NOAH with the Ticky from Trade-Ideas. See the FREE profile for NOAH NOW at Trade-Ideas

More details on NOAH:

Noah Holdings Limited, through its subsidiaries, operates as a wealth management service provider with focus on distributing wealth management products in the People's Republic of China. NOAH has a PE ratio of 18.4. Currently there is 1 analyst that rates Noah Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Noah Holdings has been 304,000 shares per day over the past 30 days. Noah has a market cap of $933.4 million and is part of the financial sector and financial services industry. Shares are down 5.2% year-to-date as of the close of trading on Thursday.

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 Noah Holdings as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • NOAH's very impressive revenue growth greatly exceeded the industry average of 1.2%. Since the same quarter one year prior, revenues leaped by 61.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 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 Capital Markets industry and the overall market, NOAH HOLDINGS LTD -ADR's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • NOAH HOLDINGS LTD -ADR 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, NOAH HOLDINGS LTD -ADR increased its bottom line by earning $0.93 versus $0.42 in the prior year. This year, the market expects an improvement in earnings ($1.26 versus $0.93).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 58.3% when compared to the same quarter one year prior, rising from $14.45 million to $22.87 million.
  • The gross profit margin for NOAH HOLDINGS LTD -ADR is currently very high, coming in at 74.85%. Regardless of NOAH's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, NOAH's net profit margin of 32.01% compares favorably to the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

null

More from Markets

Global Stocks Slide as Trump's New Trade War Salvo Ignites Fresh Concern

Global Stocks Slide as Trump's New Trade War Salvo Ignites Fresh Concern

Trump Tariff Threat, Deutsche Bank, Elon Musk and Apple - 5 Things You Must Know

Trump Tariff Threat, Deutsche Bank, Elon Musk and Apple - 5 Things You Must Know

Automakers Slump as Trump Launches National Security Probe into US Car Imports

Automakers Slump as Trump Launches National Security Probe into US Car Imports

Deutsche Bank Confirms Massive Job Cuts as New CEO Christian Sewing Plants Flag

Deutsche Bank Confirms Massive Job Cuts as New CEO Christian Sewing Plants Flag

Carnival CEO Arnold Donald: China Will Become the Largest Cruise Market

Carnival CEO Arnold Donald: China Will Become the Largest Cruise Market