Trade-Ideas: ING Groep N.V (ING) Is Today's

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 ING Groep N.V ( ING) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified ING Groep N.V as such a stock due to the following factors:

  • ING has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $53.5 million.
  • ING has traded 71,566 shares today.
  • ING is up 3.9% today.
  • ING was down 5.9% yesterday.

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More details on ING:

ING Groep N.V., a financial institution, provides banking products and services to individuals, small and medium enterprises, and mid-corporates. It operates through Retail Netherlands; Retail Belgium; Retail Germany; Retail Rest of World; and Commercial Banking segments. The stock currently has a dividend yield of 0.7%. ING has a PE ratio of 12. Currently there is 1 analyst that rates ING Groep N.V a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for ING Groep N.V has been 2.2 million shares per day over the past 30 days. ING Groep N.V has a market cap of $65.8 billion and is part of the financial sector and banking industry. Shares are up 32.8% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates ING Groep N.V as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Commercial Banks industry and the overall market, ING GROEP NV's return on equity is below that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$4,277.07 million or 135.25% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • ING, with its decline in revenue, underperformed when compared the industry average of 0.0%. Since the same quarter one year prior, revenues fell by 16.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is higher, and it has outperformed the rise in the S&P 500 over the same period. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.

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