PHH (PHH) Is Strong On High Volume Today

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

  • PHH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.4 million.
  • PHH has traded 128,290 shares today.
  • PHH is trading at 5.88 times the normal volume for the stock at this time of day.
  • PHH is trading at a new high 5.03% 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 PHH:

PHH Corporation, through its subsidiaries, provides outsourced mortgage banking services to financial institutions and real estate brokers in the United States. The company operates through two segments, Mortgage Production and Mortgage Servicing. PHH has a PE ratio of 8. Currently there are 3 analysts that rate PHH a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for PHH has been 951,100 shares per day over the past 30 days. PHH has a market cap of $863.0 million and is part of the financial sector and financial services industry. The stock has a beta of 1.51 and a short float of 10.1% with 6.25 days to cover. Shares are down 39.4% year-to-date as of the close of trading on Tuesday.

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TheStreet Quant Ratings rates PHH as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • 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 Thrifts & Mortgage Finance industry and the overall market, PHH CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for PHH CORP is currently extremely low, coming in at 12.29%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -21.16% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$330.00 million or 700.00% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 36.98%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 421.73% compared to the year-earlier 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.
  • PHH CORP 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. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, PHH CORP swung to a loss, reporting -$3.49 versus $0.92 in the prior year. This year, the market expects an improvement in earnings (-$1.30 versus -$3.49).

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