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.

Trade-Ideas LLC identified Grupo Financiero Galicia ( GGAL) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Grupo Financiero Galicia as such a stock due to the following factors:

  • GGAL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.5 million.
  • GGAL has traded 57,085 shares today.
  • GGAL is trading at 3.69 times the normal volume for the stock at this time of day.
  • GGAL 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 GGAL:

Grupo Financiero Galicia S.A. operates as a financial services holding company in Argentina. The company operates through Banking, Regional Credit Cards, CFA Personal Loans, and Insurance segments. The stock currently has a dividend yield of 0%. GGAL has a PE ratio of 12.8. Currently there are 2 analysts that rate Grupo Financiero Galicia a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Grupo Financiero Galicia has been 466,100 shares per day over the past 30 days. Grupo Financiero Galicia has a market cap of $3.3 billion and is part of the financial sector and banking industry. Shares are up 59.4% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Grupo Financiero Galicia as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, solid stock price performance, compelling growth in net income and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 2.3%. Since the same quarter one year prior, revenues rose by 25.6%. 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 Commercial Banks industry and the overall market, GRUPO FINANCIERO GALICIA SA's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Powered by its strong earnings growth of 35.08% and other important driving factors, this stock has surged by 141.43% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, GGAL should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 37.2% when compared to the same quarter one year prior, rising from $72.85 million to $99.95 million.
  • The gross profit margin for GRUPO FINANCIERO GALICIA SA is rather high; currently it is at 54.29%. Regardless of GGAL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GGAL's net profit margin of 12.32% compares favorably to the industry average.

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