Grupo Financiero Galicia (GGAL) 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 Grupo Financiero Galicia ( GGAL) as a strong 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 $8.9 million.
  • GGAL has traded 66,322 shares today.
  • GGAL is trading at 5.56 times the normal volume for the stock at this time of day.
  • GGAL is trading at a new high 4.14% 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 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 0.3%. GGAL has a PE ratio of 11. Currently there are 2 analysts that rate Grupo Financiero Galicia a buy, 1 analyst rates it a sell, and none rate it a hold.

The average volume for Grupo Financiero Galicia has been 482,400 shares per day over the past 30 days. Grupo Financiero Galicia has a market cap of $2.9 billion and is part of the financial sector and banking industry. Shares are up 38.8% year-to-date as of the close of trading on Wednesday.

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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, solid stock price performance, expanding profit margins, increase in net income and growth in earnings per share. 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:
  • GGAL's revenue growth has slightly outpaced the industry average of 0.0%. Since the same quarter one year prior, revenues slightly increased by 6.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 68.96% over the past year, a rise that has exceeded that of the S&P 500 Index. 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 gross profit margin for GRUPO FINANCIERO GALICIA SA is rather high; currently it is at 56.91%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, GGAL's net profit margin of 12.18% significantly trails the industry average.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Commercial Banks industry average. The net income increased by 3.9% when compared to the same quarter one year prior, going from $104.67 million to $108.71 million.
  • GRUPO FINANCIERO GALICIA SA's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, GRUPO FINANCIERO GALICIA SA increased its bottom line by earning $3.02 versus $2.25 in the prior year. For the next year, the market is expecting a contraction of 12.9% in earnings ($2.63 versus $3.02).

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