St. Joe (JOE) Strong On High Relative 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 St. Joe ( JOE) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified St. Joe as such a stock due to the following factors:

  • JOE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.8 million.
  • JOE has traded 154,396 shares today.
  • JOE is trading at 3.11 times the normal volume for the stock at this time of day.
  • JOE is trading at a new high 5.01% 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 JOE:

The St. Joe Company, together with its subsidiaries, operates as a real estate development company in Florida. The company operates in four segments: Residential Real Estate; Commercial Real Estate; Resorts, Leisure and Leasing Operations; and Forestry. JOE has a PE ratio of 1589. Currently there are no analysts that rate St. Joe a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for St. Joe has been 591,000 shares per day over the past 30 days. St. Joe has a market cap of $1.5 billion and is part of the financial sector and real estate industry. The stock has a beta of 1.17 and a short float of 25.1% with 11.00 days to cover. Shares are down 14.2% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates St. Joe as a hold. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:
  • JOE's debt-to-equity ratio is very low at 0.25 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • JOE, with its very weak revenue results, has greatly underperformed against the industry average of 18.2%. Since the same quarter one year prior, revenues plummeted by 97.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • ST JOE CO has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, ST JOE CO increased its bottom line by earning $4.41 versus $0.05 in the prior year. For the next year, the market is expecting a contraction of 100.2% in earnings (-$0.01 versus $4.41).
  • 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. Compared to other companies in the Real Estate Management & Development industry and the overall market, ST JOE CO's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to $1.07 million or 99.69% 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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