Tahoe Resources (TAHO) Is Strong On High Volume Today

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

  • TAHO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.8 million.
  • TAHO has traded 57,708 shares today.
  • TAHO is trading at 3.20 times the normal volume for the stock at this time of day.
  • TAHO is trading at a new high 4.15% 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 TAHO:

Tahoe Resources Inc., together with its subsidiaries, explores for and produces precious metals in the Americas. The company primarily produces silver, as well as gold, lead, and zinc. Its principal project is the Escobal project located in Southeast Guatemala. The stock currently has a dividend yield of 1.8%. TAHO has a PE ratio of 2. Currently there are 3 analysts that rate Tahoe Resources a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Tahoe Resources has been 528,600 shares per day over the past 30 days. Tahoe has a market cap of $3.1 billion and is part of the basic materials sector and metals & mining industry. Shares are down 1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Tahoe Resources as a hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:
  • TAHOE RESOURCES INC has improved earnings per share by 29.4% 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. During the past fiscal year, TAHOE RESOURCES INC turned its bottom line around by earning $0.61 versus -$0.46 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 28.5% when compared to the same quarter one year prior, rising from $24.81 million to $31.89 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, TAHOE RESOURCES INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • Despite the weak revenue results, TAHO has outperformed against the industry average of 18.2%. Since the same quarter one year prior, revenues slightly dropped by 5.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • TAHO's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 37.37%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

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