Bbva Banco FrancesS.A (BFR) Is Weak 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 Bbva Banco FrancesS.A ( BFR) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Bbva Banco FrancesS.A as such a stock due to the following factors:

  • BFR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.7 million.
  • BFR has traded 102,843 shares today.
  • BFR is trading at 5.26 times the normal volume for the stock at this time of day.
  • BFR is trading at a new low 6.00% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 BFR:

BBVA Banco Frances S.A., together with its subsidiaries, provides various financial services to corporations, medium and small companies, and individual customers in Spain, Mexico, South America, the United States, and Eurasia. BFR has a PE ratio of 1. Currently there is 1 analyst that rates Bbva Banco FrancesS.A a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Bbva Banco FrancesS.A has been 207,700 shares per day over the past 30 days. Bbva Banco FrancesS.A has a market cap of $3.0 billion and is part of the financial sector and banking industry. Shares are up 21% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Bbva Banco FrancesS.A as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, good cash flow from operations, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Compared to its closing price of one year ago, BFR's share price has jumped by 63.22%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BFR should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Net operating cash flow has significantly increased by 124.31% to $77.06 million when compared to the same quarter last year. In addition, BBVA BANCO FRANCES SA has also vastly surpassed the industry average cash flow growth rate of -37.29%.
  • The gross profit margin for BBVA BANCO FRANCES SA is rather high; currently it is at 67.07%. Regardless of BFR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 19.38% trails the industry average.
  • BFR, with its decline in revenue, slightly underperformed the industry average of 0.1%. Since the same quarter one year prior, revenues slightly dropped by 7.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. In comparison to the other companies in the Commercial Banks industry and the overall market, BBVA BANCO FRANCES SA's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.

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