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

  • ZION has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $103.1 million.
  • ZION has traded 1.1 million shares today.
  • ZION is trading at 2.17 times the normal volume for the stock at this time of day.
  • ZION is trading at a new high 3.02% 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 ZION:

Zions Bancorporation, a financial holding company, provides a range of banking and related services in Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming. The stock currently has a dividend yield of 0.8%. ZION has a PE ratio of 28. Currently there are 9 analysts that rate Zions Bancorp a buy, 1 analyst rates it a sell, and 8 rate it a hold.

The average volume for Zions Bancorp has been 2.2 million shares per day over the past 30 days. Zions has a market cap of $5.9 billion and is part of the financial sector and banking industry. The stock has a beta of 1.29 and a short float of 8% with 4.88 days to cover. Shares are up 2.3% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Zions Bancorp as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The gross profit margin for ZIONS BANCORPORATION is currently very high, coming in at 94.81%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, ZION's net profit margin of 16.13% significantly trails the industry average.
  • ZION, with its decline in revenue, slightly underperformed the industry average of 0.0%. Since the same quarter one year prior, revenues slightly dropped by 5.9%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • 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. When compared to other companies in the Commercial Banks industry and the overall market, ZIONS BANCORPORATION's return on equity is below that of both the industry average and the S&P 500.
  • ZIONS BANCORPORATION's earnings per share declined by 9.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, ZIONS BANCORPORATION increased its bottom line by earning $1.70 versus $1.58 in the prior year. For the next year, the market is expecting a contraction of 7.5% in earnings ($1.57 versus $1.70).
  • The change in net income 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 has decreased by 9.1% when compared to the same quarter one year ago, dropping from $101.21 million to $92.03 million.

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