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

  • EJ has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.8 million.
  • EJ has traded 144,031 shares today.
  • EJ is trading at 4.41 times the normal volume for the stock at this time of day.
  • EJ is trading at a new high 4.04% 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 EJ:

E-House (China) Holdings Limited, through its subsidiaries, operates as a real estate services company primarily in the People's Republic of China. The stock currently has a dividend yield of 7%. EJ has a PE ratio of 20.3. Currently there are 2 analysts that rate E-House China Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for E-House China Holdings has been 1.3 million shares per day over the past 30 days. E-House China has a market cap of $744.9 million and is part of the financial sector and real estate industry. Shares are down 28.2% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates E-House China Holdings as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and unimpressive growth in net income.

Highlights from the ratings report include:
  • EJ's revenue growth has slightly outpaced the industry average of 1.9%. Since the same quarter one year prior, revenues rose by 11.8%. 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.
  • EJ's debt-to-equity ratio is very low at 0.13 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.90, which clearly demonstrates the ability to cover short-term cash needs.
  • E-HOUSE CHINA HOLDINGS -ADR has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, E-HOUSE CHINA HOLDINGS -ADR turned its bottom line around by earning $0.36 versus -$0.59 in the prior year. This year, the market expects an improvement in earnings ($0.70 versus $0.36).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Real Estate Management & Development industry. The net income has significantly decreased by 73.5% when compared to the same quarter one year ago, falling from $19.23 million to $5.09 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 60.07%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 78.57% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, EJ is still more expensive than most of the other companies in its industry.

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