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 General Electric ( GE) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified General Electric as such a stock due to the following factors:

  • GE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $775.4 million.
  • GE has traded 29.5 million shares today.
  • GE is trading at 1.51 times the normal volume for the stock at this time of day.
  • GE crossed above its 200-day simple moving average.

'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. 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 on. 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 GE:

General Electric Company (GE) operates as an infrastructure and financial services company worldwide. The stock currently has a dividend yield of 3.7%. GE has a PE ratio of 16.6. Currently there are 8 analysts that rate General Electric a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for General Electric has been 36.7 million shares per day over the past 30 days. General Electric has a market cap of $251.9 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.37 and a short float of 0.8% with 2.79 days to cover. Shares are down 1% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates General Electric as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, compelling growth in net income, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 3.9%. Since the same quarter one year prior, revenues slightly increased by 8.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • GENERAL ELECTRIC CO has improved earnings per share by 6.1% 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, GENERAL ELECTRIC CO increased its bottom line by earning $1.50 versus $1.47 in the prior year. This year, the market expects an improvement in earnings ($1.73 versus $1.50).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Industrial Conglomerates industry. The net income increased by 60.5% when compared to the same quarter one year prior, rising from $3,209.00 million to $5,152.00 million.
  • 49.72% is the gross profit margin for GENERAL ELECTRIC CO which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 12.40% trails the industry average.

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