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

  • BGCP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.9 million.
  • BGCP has traded 261,153 shares today.
  • BGCP is trading at 4.04 times the normal volume for the stock at this time of day.
  • BGCP is trading at a new high 4.07% 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 BGCP:

BGC Partners, Inc. operates as a brokerage company in the United Kingdom, the United States, and internationally. It operates in two segments, Financial Services and Real Estate Services. The stock currently has a dividend yield of 6.5%. BGCP has a PE ratio of 215. Currently there are 2 analysts that rate BGC Partners a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for BGC Partners has been 1.0 million shares per day over the past 30 days. BGC has a market cap of $1.8 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.46 and a short float of 3.1% with 2.83 days to cover. Shares are down 5.9% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates BGC Partners as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 5.9%. Since the same quarter one year prior, revenues rose by 23.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 75.5% when compared to the same quarter one year prior, rising from $8.01 million to $14.06 million.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. 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.
  • The gross profit margin for BGC PARTNERS INC is currently extremely low, coming in at 6.61%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.56% significantly trails the industry average.
  • Net operating cash flow has significantly decreased to -$52.35 million or 81903.12% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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