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 T. Rowe Price Group ( TROW) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified T. Rowe Price Group as such a stock due to the following factors:

  • TROW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $126.9 million.
  • TROW has traded 254,178 shares today.
  • TROW is trading at 3.95 times the normal volume for the stock at this time of day.
  • TROW is trading at a new low 3.00% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 TROW:

T. Rowe Price Group, Inc. is a publicly owned asset management holding company. The firm primarily provides its services to individual and institutional investors, retirement plans, and financial intermediaries. The stock currently has a dividend yield of 2.1%. TROW has a PE ratio of 18.7. Currently there are 8 analysts that rate T. Rowe Price Group a buy, 1 analyst rates it a sell, and 7 rate it a hold.

The average volume for T. Rowe Price Group has been 1.3 million shares per day over the past 30 days. T. Rowe Price Group has a market cap of $21.5 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.48 and a short float of 3.1% with 4.98 days to cover. Shares are down 4.5% 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 T. Rowe Price Group as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, growth in earnings per share, increase in net income and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 11.5%. Since the same quarter one year prior, revenues rose by 15.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Capital Markets industry and the overall market, PRICE (T. ROWE) GROUP's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • PRICE (T. ROWE) GROUP has improved earnings per share by 12.0% 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, PRICE (T. ROWE) GROUP increased its bottom line by earning $3.89 versus $3.36 in the prior year. This year, the market expects an improvement in earnings ($4.50 versus $3.89).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Capital Markets industry average. The net income increased by 12.3% when compared to the same quarter one year prior, going from $270.30 million to $303.60 million.
  • Net operating cash flow has increased to $490.50 million or 13.96% when compared to the same quarter last year. In addition, PRICE (T. ROWE) GROUP has also vastly surpassed the industry average cash flow growth rate of -73.28%.

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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