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

  • SPF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $27.5 million.
  • SPF has traded 885,855 shares today.
  • SPF is trading at 5.93 times the normal volume for the stock at this time of day.
  • SPF 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 SPF:

Standard Pacific Corp. operates as a builder of single-family attached and detached homes in the United States. It constructs homes for various homebuyers primarily move-up buyers in metropolitan markets in California, Florida, the Carolinas, Texas, Arizona, and Colorado. SPF has a PE ratio of 16. Currently there are no analysts that rate Standard Pacific a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Standard Pacific has been 2.8 million shares per day over the past 30 days. Standard Pacific has a market cap of $2.3 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.64 and a short float of 13.6% with 6.30 days to cover. Shares are up 15.4% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Standard Pacific as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:
  • SPF's revenue growth has slightly outpaced the industry average of 12.7%. Since the same quarter one year prior, revenues rose by 18.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • 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, despite the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The debt-to-equity ratio of 1.29 is relatively high when compared with the industry average, suggesting a need for better debt level management.
  • 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 Household Durables industry and the overall market, STANDARD PACIFIC CORP's return on equity is below that of both the industry average and the S&P 500.

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