Popular (BPOP) Flagged As Strong On High Volume

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

  • BPOP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $29.7 million.
  • BPOP has traded 78,720 shares today.
  • BPOP is trading at 3.52 times the normal volume for the stock at this time of day.
  • BPOP is trading at a new high 3.01% 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 BPOP:

Popular, Inc., through its subsidiaries, provides various retail and commercial banking products and services primarily to institutional and retail customers. The company accepts various deposit products. The stock currently has a dividend yield of 2%. BPOP has a PE ratio of 3. Currently there are 2 analysts that rate Popular a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Popular has been 1.0 million shares per day over the past 30 days. Popular has a market cap of $3.2 billion and is part of the financial sector and banking industry. The stock has a beta of 1.40 and a short float of 3.4% with 3.58 days to cover. Shares are down 12.2% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Popular as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, attractive valuation levels, expanding profit margins and solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 1.1%. Since the same quarter one year prior, revenues rose by 13.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Commercial Banks industry and the overall market, POPULAR INC's return on equity exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for POPULAR INC is currently very high, coming in at 77.50%. It has increased significantly from the same period last year. Along with this, the net profit margin of 108.41% significantly outperformed against the industry average.
  • 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. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.

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