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

  • FNV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $65.2 million.
  • FNV has traded 165,385 shares today.
  • FNV is trading at 2.74 times the normal volume for the stock at this time of day.
  • FNV is trading at a new high 3.03% 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 FNV:

Franco-Nevada Corporation operates as a gold-focused royalty and stream company in the United States, Canada, Latin America, and internationally. The stock currently has a dividend yield of 1.9%. FNV has a PE ratio of 93. Currently there are 3 analysts that rate Franco-Nevada a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Franco-Nevada has been 944,400 shares per day over the past 30 days. Franco-Nevada has a market cap of $7.5 billion and is part of the basic materials sector and metals & mining industry. Shares are down 7.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Franco-Nevada as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, premium valuation and unimpressive growth in net income.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 15.3%. Since the same quarter one year prior, revenues slightly increased by 1.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • FNV has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 27.24, which clearly demonstrates the ability to cover short-term cash needs.
  • 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. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, FRANCO-NEVADA CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 26.73%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 44.00% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, FNV is still more expensive than most of the other companies in its industry.

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