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

  • SFBS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.8 million.
  • SFBS has traded 84,939 shares today.
  • SFBS is trading at 7.15 times the normal volume for the stock at this time of day.
  • SFBS is trading at a new high 7.05% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in SFBS with the Ticky from Trade-Ideas. See the FREE profile for SFBS NOW at Trade-Ideas

More details on SFBS:

ServisFirst Bancshares, Inc. operates as the bank holding company for ServisFirst Bank that provides banking services to individual and corporate customers. The stock currently has a dividend yield of 0.6%. SFBS has a PE ratio of 16. Currently there is 1 analyst that rates Servisfirst a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Servisfirst has been 97,800 shares per day over the past 30 days. Servisfirst has a market cap of $1.0 billion and is part of the financial sector and banking industry. Shares are down 17% year-to-date as of the close of trading on Thursday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Servisfirst as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and compelling growth in net income. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 5.4%. Since the same quarter one year prior, revenues rose by 26.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Commercial Banks industry and the overall market, SERVISFIRST BANCSHARES INC's return on equity exceeds that of both the industry average and the S&P 500.
  • 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. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
  • SERVISFIRST BANCSHARES INC has improved earnings per share by 27.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SERVISFIRST BANCSHARES INC reported lower earnings of $2.38 versus $3.02 in the prior year. This year, the market expects an improvement in earnings ($2.70 versus $2.38).

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.