Trade-Ideas LLC identified HCP ( HCP) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified HCP as such a stock due to the following factors:
- HCP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $154.4 million.
- HCP has traded 308,273 shares today.
- HCP is trading at 2.95 times the normal volume for the stock at this time of day.
- HCP is trading at a new low 3.03% 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. EXCLUSIVE OFFER: Get the inside scoop on opportunities in HCP with the Ticky from Trade-Ideas. See the FREE profile for HCP NOW at Trade-Ideas More details on HCP: HCP, Inc. is an independent hybrid real estate investment trust. The fund invests in real estate markets of the United States. The stock currently has a dividend yield of 6.6%. Currently there is 1 analyst that rates HCP a buy, 4 analysts rate it a sell, and 6 rate it a hold. The average volume for HCP has been 4.5 million shares per day over the past 30 days. HCP has a market cap of $16.2 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.19 and a short float of 4.4% with 3.93 days to cover. Shares are down 7.5% year-to-date as of the close of trading on Wednesday. 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 HCP as a hold. Among the primary strengths of the company is its revenue growth. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow. Highlights from the ratings report include:
- HCP's revenue growth has slightly outpaced the industry average of 5.0%. Since the same quarter one year prior, revenues rose by 12.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- HCP INC 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, HCP INC swung to a loss, reporting -$1.20 versus $1.95 in the prior year. This year, the market expects an improvement in earnings ($1.62 versus -$1.20).
- The share price of HCP INC has not done very well: it is down 19.97% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. 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 company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income has significantly decreased by 404.6% when compared to the same quarter one year ago, falling from $196.58 million to -$598.87 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, HCP INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full HCP Ratings Report.
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