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

  • VLY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.0 million.
  • VLY has traded 175,130 shares today.
  • VLY is trading at 2.32 times the normal volume for the stock at this time of day.
  • VLY is trading at a new high 3.08% 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 VLY with the Ticky from Trade-Ideas. See the FREE profile for VLY NOW at Trade-Ideas

More details on VLY:

Valley National Bancorp operates as the holding company for the Valley National Bank that provides commercial, retail, trust, and investment services. The company operates through Commercial Lending, Consumer Lending, and Investment Management segments. The stock currently has a dividend yield of 4.8%. VLY has a PE ratio of 21. Currently there is 1 analyst that rates Valley National Bancorp a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Valley National Bancorp has been 1.8 million shares per day over the past 30 days. Valley has a market cap of $2.3 billion and is part of the financial sector and banking industry. The stock has a beta of 0.87 and a short float of 7.4% with 8.49 days to cover. Shares are down 7.6% 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 Valley National Bancorp as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, expanding profit margins and growth in earnings per share. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 1.2%. Since the same quarter one year prior, revenues slightly increased by 9.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 19.3% when compared to the same quarter one year prior, going from $30.34 million to $36.19 million.
  • Net operating cash flow has slightly increased to $54.73 million or 1.60% when compared to the same quarter last year. In addition, VALLEY NATIONAL BANCORP has also vastly surpassed the industry average cash flow growth rate of -155.40%.
  • The gross profit margin for VALLEY NATIONAL BANCORP is currently very high, coming in at 81.53%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 17.47% trails the industry average.
  • VALLEY NATIONAL BANCORP has improved earnings per share by 7.7% 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, VALLEY NATIONAL BANCORP reported lower earnings of $0.43 versus $0.57 in the prior year. This year, the market expects an improvement in earnings ($0.65 versus $0.43).

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.