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 Huntington ( HBAN) as a "roof leaker" (crossing below the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Huntington as such a stock due to the following factors:

  • HBAN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $103.1 million.
  • HBAN has traded 4.6 million shares today.
  • HBAN is trading at 1.53 times the normal volume for the stock at this time of day.
  • HBAN crossed below its 200-day simple moving average.

'Roof Leaker' stocks are worth watching because trading stocks that begin to experience a breakdown can lead to potentially massive losses. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock may then be subject to emotional selling from investors that can continue to drive the stock lower. Regardless of the impetus behind the price and volume action, when a stock moves with weakness and volume it can indicate the start of a new, potentially dangerous, trend.

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More details on HBAN:

Huntington Bancshares Incorporated operates as the bank holding company for The Huntington National Bank that provides commercial, small business, and consumer banking services. The stock currently has a dividend yield of 2.4%. HBAN has a PE ratio of 14.1. Currently there are 6 analysts that rate Huntington a buy, no analysts rate it a sell, and 10 rate it a hold.

The average volume for Huntington has been 8.9 million shares per day over the past 30 days. Huntington has a market cap of $8.1 billion and is part of the financial sector and banking industry. The stock has a beta of 1.01 and a short float of 2.7% with 1.73 days to cover. Shares are down 6.4% 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 Huntington as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 5.2%. Since the same quarter one year prior, revenues slightly increased by 4.4%. 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.
  • 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. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The gross profit margin for HUNTINGTON BANCSHARES is currently very high, coming in at 92.09%. Regardless of HBAN'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 20.71% trails the industry average.
  • HUNTINGTON BANCSHARES's earnings per share declined by 10.0% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. Despite the past stability of earnings, the consensus estimate anticipates a weakening in earnings. During the past fiscal year, HUNTINGTON BANCSHARES's EPS of $0.72 remained unchanged from the prior years' EPS of $0.72. This year, the market expects earnings to be in line with last year ($0.72 versus $0.72).
  • 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 Commercial Banks industry and the overall market on the basis of return on equity, HUNTINGTON BANCSHARES has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.

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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