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

  • IAG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.4 million.
  • IAG has traded 1.1 million shares today.
  • IAG is trading at 2.61 times the normal volume for the stock at this time of day.
  • IAG is trading at a new high 3.24% 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 IAG:

IAMGOLD Corporation primarily engages in the exploration, development, and operation of gold mining properties. It also explores for silver and copper deposits. Currently there are no analysts that rate Iamgold a buy, 3 analysts rate it a sell, and 3 rate it a hold.

The average volume for Iamgold has been 4.7 million shares per day over the past 30 days. Iamgold has a market cap of $892.4 million and is part of the basic materials sector and metals & mining industry. Shares are up 73.9% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Iamgold as a sell. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and weak operating cash flow.

Highlights from the ratings report include:
  • The gross profit margin for IAMGOLD CORP is rather low; currently it is at 23.27%. It has decreased from the same quarter the previous year.
  • Net operating cash flow has significantly decreased to $9.80 million or 91.50% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • 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 Metals & Mining industry and the overall market, IAMGOLD CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Compared to where it was trading a year ago, IAG's share price has not changed very much due to (a) the relatively weak year-over-year performance of the overall market, (b) the company's stagnant earnings, and (c) other mixed results. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Metals & Mining industry average, but is less than that of the S&P 500. The net income has decreased by 15.6% when compared to the same quarter one year ago, dropping from -$72.50 million to -$83.80 million.

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