INTL FCStone (INTL) Flagged As Strong On High Volume

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

  • INTL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.4 million.
  • INTL has traded 158,978 shares today.
  • INTL is trading at 12.14 times the normal volume for the stock at this time of day.
  • INTL is trading at a new high 3.14% 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 INTL:

INTL FCStone Inc., together with its subsidiaries, operates as a financial services company worldwide. Its Commercial Hedging segment offers risk management consulting services in the areas of agricultural and energy commodities, and base metals products listed on the LME. INTL has a PE ratio of 20.2.

The average volume for INTL FCStone has been 170,000 shares per day over the past 30 days. INTL FCStone has a market cap of $623.9 million and is part of the financial sector and financial services industry. The stock has a beta of 1.39 and a short float of 5.3% with 5.03 days to cover. Shares are up 60.8% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates INTL FCStone as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and solid stock price performance. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 5.4%. Since the same quarter one year prior, revenues rose by 21.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • INTL FCSTONE INC reported significant earnings per share improvement 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, INTL FCSTONE INC increased its bottom line by earning $1.00 versus $0.95 in the prior year. This year, the market expects an improvement in earnings ($2.24 versus $1.00).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 73.3% when compared to the same quarter one year prior, rising from $7.50 million to $13.00 million.
  • Powered by its strong earnings growth of 67.50% and other important driving factors, this stock has surged by 70.99% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • 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. Compared to other companies in the Capital Markets industry and the overall market on the basis of return on equity, INTL FCSTONE INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.

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