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

  • BT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $23.7 million.
  • BT has traded 124,070 shares today.
  • BT is trading at 3.56 times the normal volume for the stock at this time of day.
  • BT is trading at a new high 3.01% 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 BT:

BT Group plc provides communications services worldwide. The stock currently has a dividend yield of 3.8%. Currently there are 3 analysts that rate BT Group a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for BT Group has been 350,000 shares per day over the past 30 days. BT Group has a market cap of $50.2 billion and is part of the technology sector and telecommunications industry. Shares are down 22.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates BT Group 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 and expanding profit margins. 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 19.7%. Since the same quarter one year prior, revenues rose by 31.1%. 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.
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Diversified Telecommunication Services industry average. The net income increased by 11.0% when compared to the same quarter one year prior, going from $919.45 million to $1,020.34 million.
  • Net operating cash flow has significantly increased by 68.69% to $2,677.59 million when compared to the same quarter last year. In addition, BT GROUP PLC has also vastly surpassed the industry average cash flow growth rate of -18.53%.
  • BT GROUP PLC's earnings per share declined by 6.3% 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, BT GROUP PLC increased its bottom line by earning $2.11 versus $1.93 in the prior year. This year, the market expects an improvement in earnings ($2.21 versus $2.11).
  • 35.92% is the gross profit margin for BT GROUP PLC which we consider to be strong. Regardless of BT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BT's net profit margin of 13.33% compares favorably to the industry average.

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