Trade-Ideas LLC identified Royal Bank Of Canada ( RY) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Royal Bank Of Canada as such a stock due to the following factors:

  • RY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $89.7 million.
  • RY has traded 424,885 shares today.
  • RY is trading at 3.76 times the normal volume for the stock at this time of day.
  • RY is trading at a new low 3.01% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 RY:

Royal Bank of Canada, together with its subsidiaries, operates as a diversified financial service company worldwide. The company operates through five segments: Personal & Commercial Banking, Wealth Management, Insurance, Investor & Treasury Services, and Capital Markets. The stock currently has a dividend yield of 4.2%. RY has a PE ratio of 11. Currently there are 5 analysts that rate Royal Bank Of Canada a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Royal Bank Of Canada has been 1.7 million shares per day over the past 30 days. Royal Bank Of Canada has a market cap of $79.7 billion and is part of the financial sector and banking industry. Shares are down 19.6% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Royal Bank Of Canada as a hold. The company's strengths can be seen in multiple areas, such as its expanding profit margins, growth in earnings per share and increase in net income. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:
  • The gross profit margin for ROYAL BANK OF CANADA is currently very high, coming in at 79.71%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 22.73% is above that of the industry average.
  • ROYAL BANK OF CANADA's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, ROYAL BANK OF CANADA increased its bottom line by earning $6.01 versus $5.49 in the prior year.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Commercial Banks industry average. The net income increased by 4.1% when compared to the same quarter one year prior, going from $2,352.00 million to $2,449.00 million.
  • 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. Compared to other companies in the Commercial Banks industry and the overall market, ROYAL BANK OF CANADA's return on equity exceeds that of both the industry average and the S&P 500.
  • RY's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 26.99%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

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